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Location of a distribution center for a perishable product

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Abstract

A model that combines an inventory and location decision is presented, analyzed and solved. In particular, we consider a single distribution center location that serves a finite number of sales outlets for a perishable product. The total cost to be minimized, consists of the transportation costs from the distribution center to the sales outlets as well as the inventory related costs at the sales outlets. The location of the distribution center affects the inventory policy. Very efficient solution approaches for the location problem in a planar environment are developed. Computational experiments demonstrate the efficiency of the proposed solution approaches.

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Notes

  1. We thank Arie Tamir for turning our attention to this proof.

  2. We thank Atsuo Suzuki for his Fortran program that finds the triangulation based on Sugihara and Iri (1994) subroutines first developed in Ohya et al. (1984).

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Authors and Affiliations

  1. Steven G. Mihaylo College of Business and Economics, California State University, Fullerton, Fullerton, CA,  92834, USA

    Zvi Drezner

  2. Paul Merage School of Business, University of California, Irvine, Irvine, CA,  92697, USA

    Carlton H. Scott

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  1. Zvi Drezner
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  2. Carlton H. Scott
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Correspondence to Zvi Drezner.

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Drezner, Z., Scott, C.H. Location of a distribution center for a perishable product. Math Meth Oper Res 78, 301–314 (2013). https://doi.org/10.1007/s00186-013-0445-6

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  • DOI: https://doi.org/10.1007/s00186-013-0445-6

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