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Transportation, facility location and inventory issues in distribution network design: An investigation
Vaidyanathan Jayaraman
International Journal of Operations & Production Management
1998
471 - 494
0144-3577
10.1108/01443579810206299
MCB UP Ltd
Examines the interdependence between facility location, transportation and inventory issues in a distribution network design problem. Management of inventories, determination of transportation policy, and location of plants and distribution centers are normally carried out by different groups of people in an organization. These activities interact, however, when the transportation is used to replace inventory, an increase in the number of warehouses increases total system inventory or location of warehouses would dictate the type of transportation mode choice or carrier that needs to be used. The proposed model, FLITNET, is expected to provide a more complete representation of the trade-offs that exist among the location, transportation and inventory cost components, and lead to an optimal solution.
Distribution, Location, Logistics, Mathematical programming
Research Paper