Location Models for Distribution Centres

Abstract

The study aims to develop a location model for distribution centres in the territory of the largest cities with a view to minimizing overall logistic costs. Optimization of warehouse and transport costs and maximization of the efficiency of using industrial-transport zones in the territory of the largest cities help to achieve the stated goal. Despite the fact that there is a sufficient number of ways to solve this problem, they have certain weaknesses: they are not entirely realistic and do not fully meet the requirements of logistic optimization and technological productivity, ignore topographical restrictions and lack transport communications and other necessary resources and factors. The proposed model is of more practical use since it utilizes the corrected distance for forecasting a more accurate value of freight turnover, optimizing transport costs and minimizing overall logistic costs. This method can be used by providers for analysing and choosing the optimal location of a logistic centre for the existing customer base, as well as by owners of industrial-transport zones situated in large and the largest cities.

Keywords

• WAREHOUSE LOCATION MODEL
• WAREHOUSE COST OPTIMIZATION
• TRANSPORT COST MINIMIZATION
• LOCATION EFFICIENCY