Optimizing the Number and Location of Warehouses in Logistics Networks Considering the Optimal Delivery Routes and Set Level of Reserve Stock

Authors

  • Volodymyr V. Sysoiev

Keywords:

logistics network, warehouse, optimal warehouse location, logistics costs, optimaldelivery route

Abstract

Forming the optimal structure of a warehouse network is one of the main strategic tasks in arranging an efficient logistics network. The suggested mathematical model and iterative method allow an optimal number and location of warehouses (in the area served by the logistics network) to be defined – with the minimum of total logistics costs for shipping of goods from suppliers through warehouses to customers. The focus is on optimal delivery routes and the optimal level to set for reserve stock contained in the storage network.

Author Biography

Volodymyr V. Sysoiev

Associate Professor

References

BOWERSOX, D. (1974). Logistical Management. New York: Macmillan Company.

BRANDEAU, M., CHIU, S. (1989).An Overview of Representative Problems in Location Research. Management Science, Vol. 35. No. 6, pp. 645-674.

CHASE, R., AQUILANO, N., & JACOBS, R. (1998).Production and operations management: manufacturing and services. Bloomington: Irwin/McGraw-Hill.

CHEONG, М.L.F., BHATNAGAR, R., & GRAVES, S. (2007). Logistics Network Design with Supplier Consolidation Hubs and Multiple Shipment Options.Journal of Industrial and Management Optimization.AIMS, Vol. 3, No 2, pp. 51-69.

COYLE, J., BARDI, E., & LANGLEY, J. (1985).The Management of Business Logistics. St. Paul: West Publishing Company.

DYBSKAY, V. (2008).Skladirovanie i gruzopererabotka (Warehousing and material handling).In V. SERGUEYEV (Ed.), Korporativnay logistika. 300 otvetov na voprosy profesionalov (Corporate Logistics. 300 Answers to the Questions of Professionals), pp. 564-674. Moscow: INFRA-M.

ENGEL, J., BLACKWELL, R., & MINIARD, P. (1995). Consumer Behavior, (8th ed.), Chicago: The Dryden Press.

GIDDINGS, A., BAILEY, T., & MOORE, J. (2000).Optimality analysis of facility location problems using response surface methodology. International Journal of Physical Distribution and Logistics Management, Vol. 31, No. 1, pp. 38-52.

GOLSTEIN, E., YOUDINE, D. (1966). Novye napravleniy v lineynom programirovanii (New Directionsin Linear Programming).Moscow: Nauka.

HOOVER, E. (1948). The Location of Economic Activity. New-York: McGraw-Hill.

KHUMAWALA, B., KELLY, D. (1974). Warehouse Location with Concave Costs. Infor, Vol. 12, No. 1, pp. 55-65.

LUKINSKIY, V.S., LUKINSKIY, V.V., MALEVICH, J., PLASTUNYAK, I., & PLETNEVA, N. (2007).Opredelenie kolichestva i koordinat skladov v regione (Determination of the numberand the coordinatesof warehousesin the region). In V.S. LUKINSKIY (Ed.), Modeli i metody teorii logistiki (Models andMethods of Logistics), pp. 383-407. (2th ed.). Saint-Petersburg: Piter.

MIROTIN, L. (2002). Transportnay logistika (Transport Logistics).Moscow: Exam.

O’KELLY, M. (1986).The Location of Interacting Hub Facilities. Transportation Science, Vol. 20, No. 2, pp. 92-106.

SALIHOV, R. (2007). Razrabotka algoritma proektirovaniy logisticheskih setey (Development of algorithmdesignlogistics networks). BulletinENGECON. Ser.: Economy, Issue5 (18), pp. 246-248.

SERGUEYEV, V. (1997).Menedgment v biznes logistike (Management inBusinessLogistics).Moscow: Feelyn.

TANSEL, B., FRANCIS, R., & LOWE, T. (1983a). Location on Networks: A Survey. Part I: The p-Center and p-Median Problems. Management Science, Vol. 29. No. 4, pp. 482-497.

TANSEL, B., FRANCIS, R., & LOWE, T. (1983b). Location on Networks: A Survey. Part II: Exploiting Tree Network Structure. Management Science, Vol. 29. No. 4, pp. 498-511.

TJAPUHIN, A. (2001). Raspredelitelnay logistika (Distribution logistics).RISK, No. 1, pp. 3-16.

WEBER, A. (1929). [translated by Carl J. Friedrich from Weber's 1909 book]. Theory of the Location of Industries. Chicago: The University of Chicago Press.

WILD, R. (1995). Essentials of Production and Operations Management: Text and Cases. (5th ed.). London: Cassell.

WILSON, A. (1974). Urban and Regional Models in Geography and Planning. Chichester and New York: John Wiley.

YAGER, R. (1982).[Russian Translation, 1986]. Fuzzy Set and Possibility Theory: Recent Developments. New York: Pergamon Press.

Downloads

Published

2013-12-15

How to Cite

V. Sysoiev, V. . (2013). Optimizing the Number and Location of Warehouses in Logistics Networks Considering the Optimal Delivery Routes and Set Level of Reserve Stock. Theory, Methodology, Practice – Review of Business and Management, 9(02), 85–93. Retrieved from https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1517

Issue

Section

Articles