The Capacitated Multi-items, Multi-facilities, Multi-periods Logistics Networks Optimisation Problem: A Warehouse Capacity Selection Problem

bina, darma (2022) The Capacitated Multi-items, Multi-facilities, Multi-periods Logistics Networks Optimisation Problem: A Warehouse Capacity Selection Problem. The Capacitated Multi-items, Multi-facilities, Multi-periods Logistics Networks Optimisation Problem: A Warehouse Capacity Selection Problem.

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Abstract

One important strategic issue related to the design and operation of a physical distribution network is the determination of the best sites for warehouses for intermediate stocking points as well as its capacity. Therefore, it is important to integrate the facility location models and decision with logistical functions and components in the logistics performance analysis. This paper focuses on optimizing the capacitated multi-items, multi-facilities, multi-periods logistics network problem. It differs from previous research in that the model includes the selection of warehouse location and capacity, and also considers backlogging. The problem is optimizing the production and distribution plan over a finite time horizon to satisfy demand requirements while determining the best selection of warehouses to be used from available warehouses and choosing its optimum capacity and the best strategy to distribute products to customers. A mixed integer linear programming (MILP) model is developed. To validate the model, several small data sets are used. The problem is solved using commercial linear programming package, CPLEX ver. 11. From the experiments there are several managerial insights. First, networks with higher warehouse capacity can expect better reduction in total network cost. Second, the number of warehouses activated and its capacity selected are related to the total demand that must be satisfied. Third, networks with high fixed setup cost tend to increase the production level to maximum capacity and store more inventories distributed in several periods And, networks with allowing backorder have a better performance when handling low demand and high demand.

Item Type: Article
Subjects: T Technology > T Technology (General)
T Technology > T Technology (General) > T201 Patents. Trademarks
T Technology > TA Engineering (General). Civil engineering (General)
Divisions: Faculty of Engineering, Science and Mathematics > School of Electronics and Computer Science
Depositing User: Mr Edi Surya Negara
Date Deposited: 14 Jun 2022 05:08
Last Modified: 14 Jun 2022 05:08
URI: http://eprints.binadarma.ac.id/id/eprint/10530

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