A STUDY ON A PROBABILISTIC MULTI-LOCATION PROBLEM IN A TWO-ECHELON LOGISTIC SYSTEM FOR DETERIORATING ITEMS

A special case of the probabilistic multi-location problem is studied in a two-echelon logistic system for deteriorating items. The objective is to determine the location of the minimum number of supply centers among a discrete set of location sites of supply centers, such that the probability each retailer being covered by some supply center is not less than a specified value. A logistic cost is introduced as performance measure of the system, and leads us to analyze the impact of deterioration rate on the location problem. The results obtained from numerical examples are discussed, which provides effective guidelines that can be used for the logistic managerial decisions.