Optimal Location of Distribution Site Based on Distance

Abstract

For most companies, successful business operation is based on the location at the right place, in the right region, on the right plot. New investments in land, buildings and material handling equipment are carried out for the longer term. As the global business environment in which a company needs to decide on location is becoming more uncertain every day, it is of huge importance to make a thoughtful and ‘future-proof’ decision on the location for a new distribution site. Allocation can also be defined as a process that results in finding a position for a warehouse, company, production, people, things, and activities in a specific area. A newly built distribution site is impossible to be moved in a short period of time, so the decision on where to build a distribution site, warehouse, or manufacturing plant is of vital and strategic importance.