Multi-commodity warehouse location and distribution planning with inventory consideration

Ronald Askin, Ilaria Baffo, Mingjun Xia

Research output: Contribution to journalArticle

37 Scopus citations

Abstract

We consider the problem of designing a distribution network for a logistics provider that acquires products from multiple facilities and then delivers those products to many retail outlets. Potential locations for consolidation facilities that combine shipments for cost reduction and service improvements are considered. The problem is formulated with direct shipment and consolidation opportunities. A novel mathematical model is derived to solve a complex facility location problem determining: (i) the location and capacity level of warehouses to open; (ii) the distribution route from each production facility to each retailer outlet; and (iii) the quantity of products stocked at each warehouse and retailer. A genetic algorithm and a specific problem heuristic are designed, tested and compared on several realistic scenarios.

Original languageEnglish (US)
Pages (from-to)1897-1910
Number of pages14
JournalInternational Journal of Production Research
Volume52
Issue number7
DOIs
StatePublished - 2014

Keywords

  • Consolidation
  • Distribution
  • Facility location
  • Genetic algorithm
  • Inventory

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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