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Logistics Village Location with Capacity Planning Problem, an MILP Model Approach

Author

Listed:
  • Amirhossein Baghestani

    (Faculty of Civil, Water and Environmental Engineering, Shahid Beheshti University, Tehran 1983969411, Iran)

  • Mohammadhossein Abbasi

    (Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran)

  • Saeed Rastegar

    (Industrial Engineering School, Iran University of Science and Technology (IUST), Tehran 1684613114, Iran)

  • Amir Reza Mamdoohi

    (Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran)

  • Atoosa Afaghpoor

    (Faculty of Urban Development, Tehran University, Tehran 141556458, Iran)

  • Mahmoud Saffarzadeh

    (Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran)

Abstract

The optimal location for establishing logistics centers is of great importance in reducing logistics costs and improving supply chain efficiency. This paper aims to provide a conceptual framework for finding the optimal location and capacity for a logistics village establishment using mixed-integer linear programming (MILP). The proposed model is applied on Qazvin province, Iran, as a developing country with a strategic location in international transport corridors. Unlike previous research, the proposed approach considers various logistics operations such as warehousing, refrigeration, sorting, and packaging, along with their capacities as distinct decision variables. The study area is divided into 6972 blocks of 1.5 × 1.5 km, of which 59% are infeasible and excluded due to environmental and natural hazard constraints. The MILP model is then applied in the GAMS for each feasible block to identify the best alternatives for the logistic village establishment with maximum total profit. Based on the results, total freight imported to Qazvin province is directly transferred to their final destinations without visiting the logistics village, while around 98% of exports of Qazvin province would first enter the logistics village to get a service before delivering to customers.

Suggested Citation

  • Amirhossein Baghestani & Mohammadhossein Abbasi & Saeed Rastegar & Amir Reza Mamdoohi & Atoosa Afaghpoor & Mahmoud Saffarzadeh, 2023. "Logistics Village Location with Capacity Planning Problem, an MILP Model Approach," Sustainability, MDPI, vol. 15(5), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4633-:d:1088374
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    References listed on IDEAS

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    1. Wang, Min & Cheng, Qing & Huang, Jincai & Cheng, Guangquan, 2021. "Research on optimal hub location of agricultural product transportation network based on hierarchical hub-and-spoke network model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 566(C).
    2. Kou-Huang Chen & Chin-Nung Liao & Li-Chun Wu, 2014. "A Selection Model to Logistic Centers Based on TOPSIS and MCGP Methods: The Case of Airline Industry," Journal of Applied Mathematics, Hindawi, vol. 2014, pages 1-10, July.
    3. Lixin Tang & Wei Jiang & Georgios Saharidis, 2013. "An improved Benders decomposition algorithm for the logistics facility location problem with capacity expansions," Annals of Operations Research, Springer, vol. 210(1), pages 165-190, November.
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