This work is focused on the integration of the standard EOQ (Economic Order Quantity) model within the facility location decision model. This is proposed to extend on the facility location task which is usually performed based on just the overall demand of the customer locations to be served. If the inventory costs are considered within the demand supply process, these may affect the overall transportation costs as these are not linearly dependent of the demand. As such, the extended model considers, besides the distances, performance and capacity of the vehicles, the order quantities and the period in which they should be fulfilled. This model was tested with a reference instance of 200 suppliers and one distribution centre. The distances were estimated by considering the geographical locations of all elements in the network and the spherical model of the Earth's surface to obtain the metric in kilometres. As analysed, by considering the inventory costs within the facility location model, it can lead to refine the location to obtain long-term savings in transportation.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.