Warehouses Location Model with Capacity Constraint

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Pishbin, Payam | 2011

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 42111 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Kianfar, Farhad
Abstract:
In this thesis, an inventory- location model considering capacity constraints and coverage radius is described in which the capacity is determined based on the maximum accumulation inventory. This model, through minimizing the sum of the fixed facility location costs, transportation costs and safety stock and working inventory costs, concurrently, determines warehouse location, assignment of retailers to warehouses, shipment sizes from the plant to warehouses, working inventory and safety stock levels at the warehouses. This problem can be formulated as a nonlinear mixed integer program in which the objective function is neither concave nor convex. Lagrangian relaxation is incorporated for solving the problem. The effect of coverage radius is evaluated through some numerical examples. The results show that considering coverage radius and capacity constraint has a major role on objective function
Keywords:
Logistics ; Inventory Management ; Lagrangian Relaxation ; Facility Location Model ; Radius Coverage