Spatial Model for Determining the Optimum Placement of Logistics Centers in a Predefined Economic Area

Abstract

The process of globalization has stimulated the demand for logistics services at a level of speed and increased efficiency, which involves using of techniques, tools, technologies and modern models in supply chain management. The aim of this research paper is to present a model that can be used in order to achieve an optimized supply chain, associated with minimum transportation costs. The utilization of spatial modeling for determining the optimal locations for logistics centers in a predefined economic area is proposd in this paper. The principal methods used to design the model are mathematic optimization and linear programming. The output data of the model are the precise placement of one up to ten logistics centers, in terms of minimum operational costs for delivery from the optimum locations to consumer points. The results of the research indicate that by using the proposed model, an efficient supply chain that is consistent with optimization of transport can be designed, in order to streamline the delivery process and thus reduce operational costs

Keywords

• logistic model
• decision-making process
• supply chain
• optimal location
• mathematical modeling
• linear programming