Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Capacity Expansion Planning Model of Private Distribution Center Under Usability of Public Distribution Center

영업용 물류센터 사용하에서 자가 물류센터의 크기 확장계획 모형

  • Chang, Suk-Hwa (Department of Industrial and Management Engineering, University of Incheon)
  • 장석화 (인천대학교 산업경영공학과)
  • Received : 2009.09.09
  • Accepted : 2010.03.22
  • Published : 2010.03.31
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Abstract

This paper addresses capacity expansion planning model of distribution center under usability of public distribution center. For discrete and finite time periods, demands for distribution center increase dynamically. The capacity expansion planning is to determine the capacity expansion size of private distribution center and usage size of public distribution center for each period through the time periods. The capacity expansion of private distribution center or lease usage of public distribution center must be done to satisfy demand increase for distribution center. The costs are capacity expansion cost and excess capacity holding cost of private distribution center, lease usage cost of public distribution center. Capacity expansion planning of minimizing the total costs is mathematically modelled. The properties of optimal solution are characterized and a dynamic programming algorithm is developed. A numerical example is shown to explain the problem.

Keywords

References

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