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Facility Location Analysis is Just the Beginning (If you Do It Right)

Author

Listed:
  • Arthur M. Geoffrion

    (Graduate School of Management, University of California, Los Angeles, California 90024)

  • Richard F. Powers

    (President, Insight, Inc., P.O. Box 2176, Springfield, Virginia 22152)

Abstract

The question How many warehouses should we have: is deceptively simple because a proper answer requires answering, at the same time, a host of interdependent questions. We think that this calls for a comprehensive distribution planning model with optimization capability. Such a managerial tool can be used to deal not only with warehouse location questions, but also with a variety of additional management questions. With this approach, the seed provided by the facility location issue can hear fruit of added utility far beyond original expectations.The authors' experience is that this full potential is seldom achieved in practice without deliberate efforts to remove the block caused by the usual narrow focus on “just” locating facilities.

Suggested Citation

  • Arthur M. Geoffrion & Richard F. Powers, 1980. "Facility Location Analysis is Just the Beginning (If you Do It Right)," Interfaces, INFORMS, vol. 10(2), pages 22-30, April.
    • Handle: RePEc:inm:orinte:v:10:y:1980:i:2:p:22-30
    DOI: 10.1287/inte.10.2.22
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    Cited by:

    1. Irineu de Brito & Silvia Uneddu & Emma Maspero & Paulo Gonçalves, 2020. "Optimizing Long-Lasting Insecticidal Nets Campaign in Ivory Coast," Logistics, MDPI, vol. 4(3), pages 1-21, August.
    2. 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.
    3. Gerald G. Brown & Richard E. Rosenthal, 2008. "Optimization Tradecraft: Hard-Won Insights from Real-World Decision Support," Interfaces, INFORMS, vol. 38(5), pages 356-366, October.

    More about this item

    Keywords

    facilities/equipment; location: planning;

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