Warehouse Location Problem
Finding the optimal location for industrial facilities has always been of a crucial importance and priority from geographers’ and economists’ view point. Although economics play the main role in presenting location theories by resorting to its theories, g
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Warehouse Location Problem Zeinab Bagherpoor, Shaghayegh Parhizi, Mahtab Hoseininia, Nooshin Heidari, and Reza Ghasemi Yaghin
Finding the optimal location for industrial facilities has always been of a crucial importance and priority from geographers’ and economists’ view point. Although economics play the main role in presenting location theories by resorting to its theories, geographers, with their focus on locative and spatial changes leading to natural phenomenon, have also had a share in complimenting these location theories and finding optimal points to locate industrial activities location. From this point of view, materials, market and other manufacturing factors have not been concentrated in one point, and their spatial separation necessitates traveling distances which, in turn, brings about costs. That is why optimal industrial location is also a part of geographical studies. By location theories, we mean “a series of principals with resorting to which, the optimal location of industrial activities is determined (point conjoining on the most benefit)”. The history of location theories goes back to nineteenth century in Germany. The first industrial location theory was presented by Shuffle in 1878 A.D. He was successful in applying the gravity model in the way industries are located: Mij D Pi Pj Dij 2 ;
(13.1)
where P&D represent population and distances, respectively. In this way, industries are located adjacent to huge cities as a response to demand and market factors. The most dominating principle in finding the optimal location is based on the basis of the least cost. Lanhart is another scientist in this field who represented his theory in 1882. According to his reasoning, the position of industries depends on the significant factor of transportation. In other words, the ideal point for locating industry is a point where the total transportation cost, including material, final products and fuel, are at minimum. At the mercy of myriad business, logistics and government initiatives, including just in time production, quick response, research on quality, enhanced customer satisfaction, operators’ safety, and environmental protection, warehouse operations have been and are continuously revolutionized (Tompkins et al. 1996). Warehouses can play each of the following roles in a distribution network: They can be used as a balance and storage point because of the difference between the time scheduling and manufacturing demand. For this reason, the R.Z. Farahani and M. Hekmatfar (eds.), Facility Location: Concepts, Models, Algorithms and Case Studies, Contributions to Management Science, c Physica-Verlag Heidelberg 2009 DOI 10.1007/978-3-7908-2151-2 13,
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warehouses are usually located at the manufacturing point. Complete pallets flow in and out. Warehouses whose role is limited to this can have monthly and seasonal demands until progressing to the next step in distribution. They can be utilized for storing and commixing outputs coming from different manufacturing poi
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