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Optimal model for warehouse location and retailer allocation
Author(s) -
Gill Avninder,
Ishaq Bhatti M.
Publication year - 2007
Publication title -
applied stochastic models in business and industry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.413
H-Index - 40
eISSN - 1526-4025
pISSN - 1524-1904
DOI - 10.1002/asmb.666
Subject(s) - supply chain , warehouse , computer science , operations research , integer programming , product (mathematics) , facility location problem , set (abstract data type) , heuristic , supply chain management , location allocation , business , mathematical optimization , marketing , mathematics , algorithm , geometry , artificial intelligence , programming language
Warehouse location and retailer allocation is a high‐level strategic decision problem that is commonly encountered by logisticians and supply chain managers, especially during the supply chain design phase. Considering the product distribution cost and warehouse capital cost trade‐offs, this paper models the warehouse location and retailer allocation problem as a 0–1 integer programming problem and provides an efficient two‐stage set covering heuristic algorithm to solve large‐sized problems. Finally, concluding remarks and some recommendations for further research are also presented. Copyright © 2007 John Wiley & Sons, Ltd.