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Optimal warehouse location and size in practice

Author

Listed:
  • Richard J. Caron
  • Tareq Oshan

Abstract

Facility location decisions are crucial in supply chain network design because they affect a firm's profitability and success. We present an example of the optimal selection of the location and size of warehouses for a Canadian company with operations across the nation. We begin with a description of the optimisation model that will be used to determine the size and location of new warehouses as well as the allocation of branches to warehouse. We will then discuss the characteristics of the company and explain the challenges that were overcome in fitting the application to the model. We continue with an analysis of the solutions and follow that with a summary of lessons learned.

Suggested Citation

  • Richard J. Caron & Tareq Oshan, 2023. "Optimal warehouse location and size in practice," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 47(4), pages 547-557.
    • Handle: RePEc:ids:ijores:v:47:y:2023:i:4:p:547-557
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