Abstract
This study concerns to the determination of location of freight distribution warehouses. It is part of a series of research projects on a distribution system we developed to deal with cases in a public service obligation state-owned company (PSO-SOC). This current research is characterized by the consideration of background traffic of the entire time period of planning rather than one certain time target on location model. It is aimed that the location decision to be more applicable and accommodative to the dynamic of the traffic condition. Once the decision is implemented, it will give the best outcome for the entire time period, not only for the initial time, end time or certain time of time period. A heuristic approach is proposed to simplify complexity of the model and network representation technique is applied to solve the model. A hyphotetical example is discussed to illustrate the mechanism of finding the optimal solution in term of both its objective function and applicability.
Highlights
Research on determination location of facilities of freight distribution system has been done for many years
This study concerns to the determination of location of freight distribution warehouses. It is part of a series of research projects on a distribution system we developed to deal with cases in a public service obligation state-owned company (PSO-SOC)
As the location decision is designed for a long time period, such as 15 - 20 years, and it is commonly known that the traffic is very dynamic in nature, to consider only one certain time to be the reference of the number of background traffic may cause the decision obsolete prior to its final year
Summary
Research on determination location of facilities of freight distribution system has been done for many years. This research area is still challenging to be explored in order to enhance the previous works and solve particular problems This current research is part of series of research on location model which concerns to Public Service Obligation State-Owned Company’s (PSO-SOC) distribution system [5,6,7]. In order to accommodate the dynamic of background traffic, we propose a dynamic location model which considers the fluctuation of background traffic using time increment during time period of planning. The location decision of such model is amenable for people to construct or operate warehouses in stages throughout time period of planning This current research is focused to develop the mechanism of choosing the best combination of warehouses to be opened to accommodate the real traffic condition at the most and at the same time it could be applicable in practice.
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