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The Transportation Size and the Location of Distribution Centers in a Distribution System  

Chang, Suk-Hwa (Dept. of Industrial and Management Engineering, University of Incheon)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.30, no.3, 2007 , pp. 12-19 More about this Journal
Abstract
This paper is to determine the transportation size and the location of distribution centers to minimize logistics cost in a distribution system where products are transported from the distribution centers to the retailers. Logistics cost consists of the fixed cost of distribution centers, the transportation cost from the distribution centers to the retailers and the inventory holding cost in the retailers. The logistics cost is affected by the transportation size and the location of distribution centers. The transportation size affects transportation cost and inventory holding cost. The location of distribution centers affects the transportation cost. A mathematical model is formulated and the algorithm is developed. A numerical example is shown to explain the problem.
Keywords
Transportation size; Location of distribution center; Distribution system;
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