Location-allocation model with distance and quantity sensitive freight rates to determine warehouse locations for high frequency (JIT) deliveries
Proceedings - Annual Meeting of the Decision Sciences Institute
This paper presents an analysis of the effect of high frequency delivery requirement of JIT manufacturing on warehouse locations in a two-level distribution system consisting of a single plant and one or more warehouses. Higher delivery frequency reduces the shipment quantity and may require a relocation of the warehouses. A nonlinear location-allocation type mixed-integer programming model is developed to determine if and when such relocations are necessary. An equivalent linear model is formulated for computational feasibility. The model affords the choice of transport modes, comparison of direct versus consolidated shipments, and the specification of plant to warehouse delivery frequency. Several examples are solved by using the LINGO software, and observations are made on the generality of solutions.
Original Publication Date
Das, Chandrasekhar and Tyagi, Rajesh, "Location-allocation model with distance and quantity sensitive freight rates to determine warehouse locations for high frequency (JIT) deliveries" (1997). Faculty Publications. 3971.