Optimization models for the dynamic facility location and allocation problem

none2The design of logistic distribution systems is one of the most critical and strategic issues in industrial facility management. The aim of this study is to develop and apply innovative mixed integer programming optimization models to design and manage dynamic (i.e. multi-period) multi-stage and multi-commodity location-allocation problems (LAP). LAP belong to the NP-hard complexity class of decision problems, and the generic occurrence requires simultaneous determination of the number of logistic facilities (e.g. production plants, warehousing systems, distribution centers), their locations, and assignment of customer demand to them. The proposed models use a mixed integer linear programming solver to find solutions in complex industrial applications even when several entities are involved (production plants, distribution centers, customers, etc.). Lastly, an application of the proposed models to a significant case study is presented and discussed.First Published on: 23 February 2007 To cite this Article: , 'Optimization models for the dynamic facility location and allocation problem', International Journal of Production Research, 1 - 26 To link to this article: DOI: 10.1080/00207540600847418 URL: http://dx.doi.org/10.1080/00207540600847418mixedMANZINI R.; GEBENNINI E.MANZINI R.; GEBENNINI E