Simulation-based approach to the warehouse location problem for a large-scale real instance

Abstract

We simulated a large-scale Uncapacitated Warehouse (Facility) Location Problems (UFLP) in the real world on a digital map, and found an approximate solution.The problem was to find a near-optimal solution for the number and locations of warehouses that minimize the sum of the transportation cost and fixed cost, and meet the needs of 6,800 customers. The network data of the digital map were efficiently used to obtain candidate warehouse locations, to simulate the transportation cost, to simulate the warehouse fixed cost, and to find a near-optimal solution for the number and locations of warehouses. In this paper, we propose a simulation-based approach to the large-scale UFLP, including a new heuristic algorithm named "Balloon Search " and give the results of our 7 experiments.

Multi-criteria warehouse location selection using Choquet integral

“…Arostegui, Kadipasaoglu, and Khumawala (2006) compare the relative performance of TS, SA, and GA on various facilities location problems. Hidaka and Okano (1997) propose a simulation-based approach to the large-scale incapacitated warehouse/facility location problems, including a heuristic algorithm named ''Balloon Search". Many warehouse location models do not explicitly represent the effect of dependent criteria.…”

Literature Review on Success Factors and Methods Used in Warehouse Location Selection

“…[5] presented an integrated approach to the warehouse site selection process by taken into account both qualitative and quantitative factors. [6] proposed a simulation based approach to the large-scale of uncapacitated warehouse location problems in the real world on a digital map by balloon search which is a new heuristic algorithm. The efficiency of expanding the Balloon is not so clear in the given problem instance.…”

Efficient surface gateway deployment for underwater sensor networks

“…Heuristic approaches for solving similar optimization problems, such as the warehouse location problem, have already been investigated before in reseach [2]. Their findings directed our attention to the greedy and greedyinterchange algorithms which proved to be effective for solving large scale warehouse location problems [2].…”

“…Their findings directed our attention to the greedy and greedyinterchange algorithms which proved to be effective for solving large scale warehouse location problems [2]. In the rest of this section both the greedy and greedyinterchange algorithms for solving the deployment optimization problems are presented along with a complexity analysis of both algorithms.…”