Advanced Search
MyIDEAS: Login to save this article or follow this journal

Facility location and supply chain management - A review

Contents:

Author Info

  • Melo, M.T.
  • Nickel, S.
  • Saldanha-da-Gama, F.
Registered author(s):

    Abstract

    Facility location decisions play a critical role in the strategic design of supply chain networks. In this paper, a literature review of facility location models in the context of supply chain management is given. We identify basic features that such models must capture to support decision-making involved in strategic supply chain planning. In particular, the integration of location decisions with other decisions relevant to the design of a supply chain network is discussed. Furthermore, aspects related to the structure of the supply chain network, including those specific to reverse logistics, are also addressed. Significant contributions to the current state-of-the-art are surveyed taking into account numerous factors. Supply chain performance measures and optimization techniques are also reviewed. Applications of facility location models to supply chain network design ranging across various industries are presented. Finally, a list of issues requiring further research are highlighted.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6VCT-4SHMCGF-4/2/0d76c31428e3db2bb994dd00d008505f
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 196 (2009)
    Issue (Month): 2 (July)
    Pages: 401-412

    as in new window
    Handle: RePEc:eee:ejores:v:196:y:2009:i:2:p:401-412

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/eor

    Related research

    Keywords: Facility location Supply chain management Network design;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Carlsson, Dick & Ronnqvist, Mikael, 2005. "Supply chain management in forestry--case studies at Sodra Cell AB," European Journal of Operational Research, Elsevier, vol. 163(3), pages 589-616, June.
    2. Hinojosa, Y. & Puerto, J. & Fernandez, F. R., 2000. "A multiperiod two-echelon multicommodity capacitated plant location problem," European Journal of Operational Research, Elsevier, vol. 123(2), pages 271-291, June.
    3. Vidal, Carlos J. & Goetschalckx, Marc, 1997. "Strategic production-distribution models: A critical review with emphasis on global supply chain models," European Journal of Operational Research, Elsevier, vol. 98(1), pages 1-18, April.
    4. Min, Hokey & Melachrinoudis, Emanuel, 1999. "The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study," Omega, Elsevier, vol. 27(1), pages 75-85, February.
    5. Aksen, Deniz & Altinkemer, Kemal, 2008. "A location-routing problem for the conversion to the "click-and-mortar" retailing: The static case," European Journal of Operational Research, Elsevier, vol. 186(2), pages 554-575, April.
    6. Listes, Ovidiu & Dekker, Rommert, 2005. "A stochastic approach to a case study for product recovery network design," European Journal of Operational Research, Elsevier, vol. 160(1), pages 268-287, January.
    7. Jayaraman, Vaidyanathan & Ross, Anthony, 2003. "A simulated annealing methodology to distribution network design and management," European Journal of Operational Research, Elsevier, vol. 144(3), pages 629-645, February.
    8. Mazzola, Joseph B. & Neebe, Alan W., 1999. "Lagrangian-relaxation-based solution procedures for a multiproduct capacitated facility location problem with choice of facility type," European Journal of Operational Research, Elsevier, vol. 115(2), pages 285-299, June.
    9. Verter, Vedat & Dasci, Abdullah, 2002. "The plant location and flexible technology acquisition problem," European Journal of Operational Research, Elsevier, vol. 136(2), pages 366-382, January.
    10. Keskin, Burcu B. & Uster, Halit, 2007. "Meta-heuristic approaches with memory and evolution for a multi-product production/distribution system design problem," European Journal of Operational Research, Elsevier, vol. 182(2), pages 663-682, October.
    11. Troncoso, Juan J. & Garrido, Rodrigo A., 2005. "Forestry production and logistics planning: an analysis using mixed-integer programming," Forest Policy and Economics, Elsevier, vol. 7(4), pages 625-633, May.
    12. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
    13. Snyder, Lawrence V. & Daskin, Mark S. & Teo, Chung-Piaw, 2007. "The stochastic location model with risk pooling," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1221-1238, June.
    14. Eskigun, Erdem & Uzsoy, Reha & Preckel, Paul V. & Beaujon, George & Krishnan, Subramanian & Tew, Jeffrey D., 2005. "Outbound supply chain network design with mode selection, lead times and capacitated vehicle distribution centers," European Journal of Operational Research, Elsevier, vol. 165(1), pages 182-206, August.
    15. ReVelle, C.S. & Eiselt, H.A. & Daskin, M.S., 2008. "A bibliography for some fundamental problem categories in discrete location science," European Journal of Operational Research, Elsevier, vol. 184(3), pages 817-848, February.
    16. Julka, Nirupam & Baines, Tim & Tjahjono, Benny & Lendermann, Peter & Vitanov, Val, 2007. "A review of multi-factor capacity expansion models for manufacturing plants: Searching for a holistic decision aid," International Journal of Production Economics, Elsevier, vol. 106(2), pages 607-621, April.
    17. Wilhelm, Wilbert & Liang, Dong & Rao, Brijesh & Warrier, Deepak & Zhu, Xiaoyan & Bulusu, Sharath, 2005. "Design of international assembly systems and their supply chains under NAFTA," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 467-493, November.
    18. Lee, Der-Horng & Dong, Meng, 2008. "A heuristic approach to logistics network design for end-of-lease computer products recovery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 455-474, May.
    19. ReVelle, C. S. & Eiselt, H. A., 2005. "Location analysis: A synthesis and survey," European Journal of Operational Research, Elsevier, vol. 165(1), pages 1-19, August.
    20. Romeijn, H. Edwin & Shu, Jia & Teo, Chung-Piaw, 2007. "Designing two-echelon supply networks," European Journal of Operational Research, Elsevier, vol. 178(2), pages 449-462, April.
    21. Tuzun, Dilek & Burke, Laura I., 1999. "A two-phase tabu search approach to the location routing problem," European Journal of Operational Research, Elsevier, vol. 116(1), pages 87-99, July.
    22. Jayaraman, Vaidyanathan & Pirkul, Hasan, 2001. "Planning and coordination of production and distribution facilities for multiple commodities," European Journal of Operational Research, Elsevier, vol. 133(2), pages 394-408, January.
    23. Sheu, Jiuh-Biing, 2003. "Locating manufacturing and distribution centers: An integrated supply chain-based spatial interaction approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(5), pages 381-397, September.
    24. Ambrosino, Daniela & Grazia Scutella, Maria, 2005. "Distribution network design: New problems and related models," European Journal of Operational Research, Elsevier, vol. 165(3), pages 610-624, September.
    25. Vidal, Carlos J. & Goetschalckx, Marc, 2001. "A global supply chain model with transfer pricing and transportation cost allocation," European Journal of Operational Research, Elsevier, vol. 129(1), pages 134-158, February.
    26. Pati, Rupesh Kumar & Vrat, Prem & Kumar, Pradeep, 2008. "A goal programming model for paper recycling system," Omega, Elsevier, vol. 36(3), pages 405-417, June.
    27. Melkote, Sanjay & Daskin, Mark S., 2001. "Capacitated facility location/network design problems," European Journal of Operational Research, Elsevier, vol. 129(3), pages 481-495, March.
    28. Barros, A. I. & Dekker, R. & Scholten, V., 1998. "A two-level network for recycling sand: A case study," European Journal of Operational Research, Elsevier, vol. 110(2), pages 199-214, October.
    29. Miranda, Pablo A. & Garrido, Rodrigo A., 2004. "Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(3), pages 183-207, May.
    30. Santoso, Tjendera & Ahmed, Shabbir & Goetschalckx, Marc & Shapiro, Alexander, 2005. "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, Elsevier, vol. 167(1), pages 96-115, November.
    31. Salema, Maria Isabel Gomes & Barbosa-Povoa, Ana Paula & Novais, Augusto Q., 2007. "An optimization model for the design of a capacitated multi-product reverse logistics network with uncertainty," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1063-1077, June.
    32. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    33. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.
    34. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    35. Max Shen, Zuo-Jun & Qi, Lian, 2007. "Incorporating inventory and routing costs in strategic location models," European Journal of Operational Research, Elsevier, vol. 179(2), pages 372-389, June.
    36. Talluri, Srinivas & Baker, R. C., 2002. "A multi-phase mathematical programming approach for effective supply chain design," European Journal of Operational Research, Elsevier, vol. 141(3), pages 544-558, September.
    37. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    38. Chakravarty, Amiya K., 2005. "Global plant capacity and product allocation with pricing decisions," European Journal of Operational Research, Elsevier, vol. 165(1), pages 157-181, August.
    39. Nozick, Linda K. & Turnquist, Mark A., 1998. "Integrating inventory impacts into a fixed-charge model for locating distribution centers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(3), pages 173-186, September.
    40. Melachrinoudis, Emanuel & Min, Hokey, 2000. "The dynamic relocation and phase-out of a hybrid, two-echelon plant/warehousing facility: A multiple objective approach," European Journal of Operational Research, Elsevier, vol. 123(1), pages 1-15, May.
    41. Vila, Didier & Martel, Alain & Beauregard, Robert, 2006. "Designing logistics networks in divergent process industries: A methodology and its application to the lumber industry," International Journal of Production Economics, Elsevier, vol. 102(2), pages 358-378, August.
    42. Dasci, Abdullah & Verter, Vedat, 2001. "A continuous model for production-distribution system design," European Journal of Operational Research, Elsevier, vol. 129(2), pages 287-298, March.
    43. Farahani, Reza Zanjirani & Asgari, Nasrin, 2007. "Combination of MCDM and covering techniques in a hierarchical model for facility location: A case study," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1839-1858, February.
    44. Jayaraman, Vaidyanathan & Patterson, Raymond A. & Rolland, Erik, 2003. "The design of reverse distribution networks: Models and solution procedures," European Journal of Operational Research, Elsevier, vol. 150(1), pages 128-149, October.
    45. Marin, Alfredo & Pelegrin, Blas, 1998. "The return plant location problem: Modelling and resolution," European Journal of Operational Research, Elsevier, vol. 104(2), pages 375-392, January.
    46. Gunnarsson, Helene & Ronnqvist, Mikael & Lundgren, Jan T., 2004. "Supply chain modelling of forest fuel," European Journal of Operational Research, Elsevier, vol. 158(1), pages 103-123, October.
    47. Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
    48. Avittathur, Balram & Shah, Janat & Gupta, Omprakash K., 2005. "Distribution centre location modelling for differential sales tax structure," European Journal of Operational Research, Elsevier, vol. 162(1), pages 191-205, April.
    49. Lowe, Timothy J. & Wendell, Richard E. & Hu, Gang, 2002. "Screening location strategies to reduce exchange rate risk," European Journal of Operational Research, Elsevier, vol. 136(3), pages 573-590, February.
    50. Min, Hokey & Jeung Ko, Hyun & Seong Ko, Chang, 2006. "A genetic algorithm approach to developing the multi-echelon reverse logistics network for product returns," Omega, Elsevier, vol. 34(1), pages 56-69, January.
    51. Melachrinoudis, Emanuel & Min, Hokey, 2007. "Redesigning a warehouse network," European Journal of Operational Research, Elsevier, vol. 176(1), pages 210-229, January.
    52. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    53. Goh, Mark & Lim, Joseph Y.S. & Meng, Fanwen, 2007. "A stochastic model for risk management in global supply chain networks," European Journal of Operational Research, Elsevier, vol. 182(1), pages 164-173, October.
    54. Sridharan, R., 1995. "The capacitated plant location problem," European Journal of Operational Research, Elsevier, vol. 87(2), pages 203-213, December.
    55. Melachrinoudis, Emanuel & Messac, Achille & Min, Hokey, 2005. "Consolidating a warehouse network:: A physical programming approach," International Journal of Production Economics, Elsevier, vol. 97(1), pages 1-17, July.
    56. Miranda, Pablo A. & Garrido, Rodrigo A., 2008. "Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(1), pages 47-65, January.
    57. Wang, Ziping & Yao, Dong-Qing & Huang, Peiqing, 2007. "A new location-inventory policy with reverse logistics applied to B2C e-markets of China," International Journal of Production Economics, Elsevier, vol. 107(2), pages 350-363, June.
    58. Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
    59. Meixell, Mary J. & Gargeya, Vidyaranya B., 2005. "Global supply chain design: A literature review and critique," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 531-550, November.
    60. Amiri, Ali, 2006. "Designing a distribution network in a supply chain system: Formulation and efficient solution procedure," European Journal of Operational Research, Elsevier, vol. 171(2), pages 567-576, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:196:y:2009:i:2:p:401-412. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.