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New Strategy for Location Decision Using Loss Concept  

Hwang, In-Keuk (Dept. of Industrial & System Engineering, Kongju National University)
Lee, Chang-Yong (Dept. of Industrial Information, Kongju National University)
Song, Chang-Yong (Dept. of Industrial Engineering, Halla University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.30, no.4, 2007 , pp. 103-110 More about this Journal
Abstract
The facility location in designing a supply chain network is an important decision problem that gives form, structure, and shape to the entire supply chain system. Location problems involve determining the location, number, and size of the facilities to be used. The optimization of these location decisions requires careful attention to the inherent trade-offs among service time, inventory costs, facility cost, transportation costs. This paper presents a strategy that provides the best locations of distribution centers using GIS(Geographical Information System) assuming the limitation of delivery time. To get the best strategy of the location of distribution centers, we use the new loss functions as a penalty when the delivery time is violated
Keywords
Location Analysis; Geographic Information System; Loss Function;
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