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Optimizing the Number and Location of Warehouses in Logistics Networks Considering the Optimal Delivery Routes and Set Level of Reserve Stock

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  • Volodymyr V. Sysoiev

Abstract

Forming the optimal structure of a warehouse network is one of the main strategic tasks in arranging an efficient logistics network. The suggested mathematical model and iterative method allow an optimal number and location of warehouses (in the area served by the logistics network) to be defined – with the minimum of total logistics costs for shipping of goods from suppliers through warehouses to customers. The focus is on optimal delivery routes and the optimal level to set for reserve stock contained in the storage network.

Suggested Citation

  • Volodymyr V. Sysoiev, 2013. "Optimizing the Number and Location of Warehouses in Logistics Networks Considering the Optimal Delivery Routes and Set Level of Reserve Stock," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 9(02), pages 85-93.
    • Handle: RePEc:mic:tmpjrn:v:9:y:2013:i:02:p:85-93
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2013/02/TMP_2013_02_11.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    logistics network; warehouse; optimal warehouse location; logistics costs; optimaldelivery route;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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