INTEGRATING INVENTORY IMPACTS INTO A FIXED-CHARGE MODEL FOR LOCATING DISTRIBUTION CENTERS

摘要

An important question in the design of efficient logistics systems is the identification of locations for distribution centers. Optimal designs should be based on consideration of inventory, transportation, con- struction and operating costs. This paper describes a method for including inventory costs within a fixed- charge facility location model, allowing such a model to be use more effectively for the development of optimal system designs. A realistic application of the model is discussed.