Selecting the optimum location for logistics facilities using Solver

Abstract

Siting logistics facilities strategically in the most cost-effective geographic location is one of the key decisions for a contemporary company. In the long term, consequences of this decision may determine the competitive advantage of the company on the market. The aim of the paper is to present a solution to this problem using the Solver add-on. To specify the optimum location of a logistics facility, with the lowest transportation cost, the method of Euclidean coordinates was used.

Keywords

• location of logistics facilities
• optimization
• Solver