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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

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    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.

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2013/02/TMP_2013_02_11.pdf
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    Bibliographic Info

    Article provided by Faculty of Economics, University of Miskolc in its journal Theory Methodology Practice (TMP).

    Volume (Year): 9 (2013)
    Issue (Month): 02 ()
    Pages: 85-93

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    Handle: RePEc:mic:tmpjrn:v:9:y:2013:i:02:p:85-93

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    Related research

    Keywords: logistics network; warehouse; optimal warehouse location; logistics costs; optimaldelivery route;

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    1. Barbaros C. Tansel & Richard L. Francis & Timothy J. Lowe, 1983. "State of the Art---Location on Networks: A Survey. Part II: Exploiting Tree Network Structure," Management Science, INFORMS, vol. 29(4), pages 498-511, April.
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