A Logistics Networks Optimisation Model for Warehouse Operation Selection Problem

UNIVERSITAS BINA DARMA, UNIVERSITAS BINA DARMA (2022) A Logistics Networks Optimisation Model for Warehouse Operation Selection Problem. A Logistics Networks Optimisation Model for Warehouse Operation 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. 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: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mr Edi Surya Negara
Date Deposited: 27 Jun 2022 02:49
Last Modified: 27 Jun 2022 02:49
URI: http://eprints.binadarma.ac.id/id/eprint/16127

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