Logistics Facility Location Research Articles

A multivariate method of forecasting the nonlinear dynamics of production network based on multilayer neural models

Design of production network based on multilayer neural models is considered in this paper. Design of production network is crucial because it determines the optimal location of production and logistics facilities, affects cost efficiency, customer service level and overall competitiveness in the global market. Multi-layer neural networks play an important role in this process, using advanced algorithms, machine learning models and optimization techniques to analyze huge amounts of data. Special attention is focused on qualitative analysis of dynamic behavior, dynamic lattice model. The model includes rate constants and initial conditions affecting the model trajectories, which can be classified as a stable site, limit cycle, or chaotic attractor. We aim to solve the problem of qualitative behavior of the model as a problem of multilayer neural models. A multivariate method of predicting nonlinear dynamics was used to construct the training data set. Neural networks defined by regenerative architectures with linear and non-linear outputs were analyzed and compared. As a result of the analysis, it was found that architectures with linear outputs show better correspondence between expected and predicted values. Architectures with non-linear outputs, despite their complexity, exhibit less accuracy and more deviation compared to linear ones. The single-layer architecture with linear outputs shows the best accuracy, although the two-layer architecture with linear outputs has the lowest rms error. Architectures with non-linear outputs have faster training times but poor accuracy, while architectures with linear outputs require more training time but have lower errors. The results obtained in the work indicate the importance of choosing the right architecture of the neural network depending on the tasks and requirements for accuracy and training time of the model.

Exploring location factors of logistics facilities from a spatiotemporal perspective: A case study from Shanghai

In the era of economic globalization and the e-commerce boom, the demand for urban logistics has been rapidly growing in terms of both scale and intensity. The spatial clustering of logistics facilities and their associated environmental consequences has caused growing concern. This study analyzes the spatial evolution of logistics facilities and establishes a series of regression models to explore the driving factors of logistics facility location choice using a high-resolution grid-based data set. The results show that as the urban highway network gets improved, transportation costs are more balanced across space. Therefore, the distribution of logistics facilities is less regionally constrained and more widely located in space. The spatial evolution of logistics facilities was driven not only by demand of land uses and industries but also by transport supply and urban structure. Land use planning including the planning of industrial parks is among the important driving forces affecting the spatial location of logistics facilities, although the effects vary across types of logistics facilities. This study aims to provide a sustainable development-oriented policy path for regional development by proposing an analytical framework that reconsiders spatial location choice factors as a means of controlling logistics environmental negative externalities.

Same day delivery in B2C e-commerce systems in the UAE context

This work aimed to investigate the effect of various factors on cost, customer satisfaction and cycle time with respect to same day delivery (SDD). Using survey and Pareto chart, four factors were identified as the most important: logistics resources ownership, operations management, IT infrastructure, and facility location. Analysis of variance (ANOVA) revealed that all the four factors were significant for cost. For customer satisfaction and cycle time, all factors except logistics resources ownership were found to be significant. Correlation between cost, customer satisfaction and cycle time was studied and regression models were developed. A multi-objective optimisation model was used to find the best levels of the significant factors to optimise SDD. Analytic hierarchy process (AHP) was used to determine the relative weights for the cost, customer satisfaction and cycle time. The findings would help e-retailers in decision-making. Since the survey was conducted in UAE, the result would be limited to UAE.

Illustrating scholar–practitioner collaboration for data-driven decision-making in the optimization of logistics facility location and implications for increasing the adoption of AR and VR practices

PurposeThis study illustrates the experience of scholar–practitioner collaboration for data-driven decision-making through the problematic of optimizing facility locations and minimizing logistics costs for La Palette Rouge (LPR) of Portugal.Design/methodology/approachThe authors used a mixed mixed-method approach involving (1) a quantitative exploratory analysis of big data, which applied analytics and mathematical modeling to optimize LPR's logistics network, and (2) an illustrative case of scholar–practitioner collaboration for data-driven decision-making.FindingsThe quantitative analysis compared more than 20 million possible configurations and proposed the optimal logistics structures. The proposed optimization model minimizes the logistics costs by 22%. Another optimal configuration revealed that LPR can minimize logistics costs by 12% through closing one of its facilities. The illustrative description demonstrates that well-established resource-rich multinational enterprises do not necessarily have the in-house capabilities and competencies to handle and analyze big data.Practical implicationsThe mathematical modeling for optimizing logistics networks demonstrates that outcomes are readily actionable for practitioners and can be extended to other country and industry contexts with logistics operations. The case illustrates that synergistic relationships can be created, and the opportunities exist between scholars and practitioners in the field of Logistics 4.0 and that scientific researcher is necessary for solving problems and issues that arise in practice while advancing knowledge.Originality/valueThe study illustrates that several Logistics 4.0 challenges highlighted in the literature can be collectively addressed through scholar–practitioner collaborations. The authors discuss the implications of such collaborations for adopting virtual and augmented reality (AR) technologies and to develop the capabilities for maximizing their benefits in mature low-medium technology industries, such as the food logistics industry.

Reverse Logistics Location Based on Energy Consumption: Modeling and Multi-Objective Optimization Method

The low-carbon economy, as a major trend of global economic development, has been a widespread concern, which is a rare opportunity to realize the transformation of the economic way in China. The realization of a low-carbon economy requires improved resource utilization efficiency and reduced carbon emissions. The reasonable location of logistics nodes is of great significance in the optimization of a logistics network. This study formulates a double objective function optimization model of reverse logistics facility location considering the balance between the functional objectives of the carbon emissions and the benefits. A hybrid multi-objective optimization algorithm that combines a gravitation algorithm and a particle swarm optimization algorithm is proposed to solve this reverse logistics facility location model. The mobile phone recycling logistics network in Jilin Province is applied as the case study to verify the feasibility of the proposed reverse logistics facility location model and solution method. Analysis and discussion are conducted to monitor the robustness of the results. The results prove that this approach provides an effective tool to solve the multi-objective optimization problem of reverse logistics location.

The geography of warehouses in the São Paulo Metropolitan Region and contributing factors to this spatial distribution

This paper aims to characterize the relocation of warehouses in the São Paulo Metropolitan Region (SPMR) considering the spatial structure of changes in warehouse locations. We also discuss the potential factors that could attract warehouses to their location, especially in peripheral regions. The study encompasses the period between 1992 and 2017 and analyzes the influence of geographical, economics, road infrastructure, municipality service tax rate, cargo theft, and real estate prices on logistics facility location. The results show no evidence of logistics sprawl in SPMR during the studied period, although a small sprawl appeared between 2010 and 2017, moving the barycenter to the Northwestern direction of the SPMR. The main factors that influence the decision to move the warehouses are the low cost of land, lower tax, and a well-served infrastructure with highway intersections. There is a positive spatial correlation between warehouse per capita and cargo theft.

Location factors for logistics facilities: Location choice modeling considering activity categories

While many past studies analyze the changes in the spatial distribution of logistics facilities and provide insights on the factors that drive the migration of logistics facilities, only a few studies analyze the factors of location choice at the individual facility level. Furthermore, the differences among various facility types, with respect to the key locational characteristics that attract logistics facility developments, are still not clear. This research attempts to fill the research gap by analyzing the location choices for logistics facility development. Using the data from the Paris Region, we characterize the locations and activities of logistics facilities and estimate a logistics facility location choice model for each activity category. The analysis reveals the key locational characteristics that influence logistics facility locations, such as zoning regulations, wholesale job accessibility, population density, and the accessibility to autoroute (controlled-access highway), as well as the heterogeneity in the effects of these characteristics by activity category. Zoning and traditional clusters play a significant role for the locations of newly developed logistics facilities, which underlines the importance of public policies for logistics land use in the Paris region. The effect of the accessibility to population is identified for the group of facilities which serve for retail shops and end-consumers only under the assumption that alternative locations are limited to specialized economic activity/logistics zones, indicating that population accessibility is a secondary factor to the designation as the specialized zone. Zoning changes to/from economic activity/logistics zones may cause significant impacts on the spatial distribution of logistics facilities, and thus, the distribution of goods vehicle traffic flow.

Beyond ‘logistics sprawl’ and ‘logistics anti-sprawl’. Case of the Katowice region, Poland

ABSTRACTThe growing role of logistics in the economic space of large metropolises is visible in an increasing number of objects of this kind as well as in their high spatial concentration. Taking into account these circumstances, a phenomenon known as ‘logistics sprawl’ is considered in the article. This is one of two problems concerning the development of logistics in metropolitan areas. Studying the Katowice conurbation in Poland, the authors note, however, that in this region the opposite phenomenon, which they define as a ‘logistics anti-sprawl’, is more noticable. Its characteristic feature is a location of logistics facilities not in the outer zone of the conurbation, but in its core. This phenomenon undoubtedly differs from the patterns of localization of logistics facilities in all major CEECs. It is caused by some chief factors which are disscused in the paper. Therefore, an attention is drawn on the period of socialist development of the region, its contemporary postindustrialism, urban shrinkage, as well as the polycentricity of the conurbation. The crucial question whether the expected reduction of the ‘sprawl logistics’ phenomenon may be based on the development model observed in the Katowice conurbation is also discussed in the article.

Heterogeneity of logistics facilities: an issue for a better understanding and planning of the location of logistics facilities

In the last few years, the issue of the location of logistics activities emerged in the literature, in Europe and in the United States, especially from the perspective of logistics spatial dynamics as logistics sprawl. These issues of spatial dynamics question urban policies, because they underline the lack of interest in freight in the planning process. Indeed, one of the major issues in planning logistics facilities is the lack of a good understanding of the logistics sector: it is difficult to guide public action in the absence of detailed and precise data. The great heterogeneity of logistics facilities is often underestimated by public policies. The visibility of some sectors in public policies or academic literature, as parcel industry or e-commerce, hides other sides of logistics as an industry sector. With this paper we underline differences in the location of facilities, which translates into a difficult implementation of public policies to regulate logistics sprawl in the case of the Paris region. This paper studies precisely the location of the warehouses and terminals, and their place in the spatial organization of logistics facilities in the Paris Region. In particular, we compare the location of mass retail and wholesale trade facilities, logistics provider’s facilities and parcel’s industry facilities.

A model of integrated regional logistics hub in supply chain

ABSTRACTA regional logistics hub is a constellation of multiple logistics facilities in a region of several provinces or states. This research models an integrated regional logistics hub with consideration of time-phased demand in a multi-echelon, multi-period, and capacitated logistics network. The integrated logistics hub considers three phases based on the characteristics of China’s five-year planning policy. By applying mixed integer linear programming, the greedy heuristics approach, the particle swarm optimization algorithm, and the Hungarian method, the location of logistics facilities at different echelons of a supply chain is identified and the needs for facility expansion or closing during different time periods are determined.

The relationship between commodity types, spatial characteristics, and distance optimality of logistics facilities

We analyze the relationship between the location of logistics facilities and the goods vehicle travel distances for the shipments associated with the facilities, using data from a large urban freight survey conducted in the Tokyo Metropolitan Area in 2013. Our analysis categorizes the logistics facilities into groups based on the type of commodity they handle. The analysis sheds light on the complex relationship between the location and “distance optimality gap,” defined as the gap between the minimum travel distance possible and the actual distance traveled by goods vehicles. The results indicate that, while the lack of available space for logistics land use near the urban center leads to significant distance optimality gaps for some logistics facility groups, such as those handling daily goods, these same locations may not be advantageous for others. Also, the logistics facilities in the exurbs are likely to have large distance optimality gaps because these locations are often far away from the origins and destinations of their shipments. In terms of land-use policy, the study reveals that simply concentrating logistics facilities near the urban core or suburbs may not reduce truck traffic. Detailed data on logistics facilities and shipments are crucial for formulating effective approaches to improve the distance optimality of logistics land use.

Logistics Space: A Literature Review from the Sustainability Perspective

The acceleration of economic globalization and integration has led to a dramatic increase in the flow of goods worldwide and changes in the spatial location of logistics facilities. The location of logistics facilities affects not only the cost and efficiency of cargo transportation activities, but also the rational allocation of logistics resources. Recently, the two major perspectives of logistics space research—cluster (the concentration of logistics facilities and functions in geography) and sprawl (movement of facilities from the urban core to peripheral places) have received extensive attention from academia and policy makers. The evolution of logistics space is influenced by land prices, traffic accessibility, market demand, agglomeration advantages and government policies. The purpose of this study is to present a literature review of logistics space, including data sources, research methods as well as research theories, and to study the impact of logistics space from the perspective of sustainable development. The research results provide some reference for logistics space researchers and logistics facility planners, and play a role in formulating new logistics development strategies and promoting the sustainable development of logistics.

Accelerating benders decomposition: multiple cuts via multiple solutions

Benders decomposition (BD) is a well-known approach that has been successfully applied to various mathematical programming problems. According to previous studies, slow convergence is the main drawback of this method. In this paper, multi-solution of the master problem has been applied to accelerate the BD algorithm and improve both lower and upper bounds by simultaneously adding multiple feasibility and optimality cuts. A novel integration of Benders cuts was used to prevent the growth of master problem. Computational experiments were applied to a series of logistics facility location problems. Our numerical experiments resulted in a 61% decrease in the total number of iterations and up to 73% reduction in the solution time, confirming the outstanding performance of the proposed method.

Optimal Urban Logistics Facility Location with Consideration of Truck-Related Greenhouse Gas Emissions: A Case Study of Shenzhen City

The logistics facility location is always involved with great deals of investment. Its construction and operation also bring out a huge amount of the greenhouse gas (GHG) emission due to the consumption of building materials, energy, the running of trucks, and other logistics equipment. Particularly, trucking activities in the urban logistics networks (ULN) are a major source of GHG. This paper aims to formulate an eco-facility location model to minimize both the total cost of ULN construction and operation and the GHG emissions of truck trips. Based on the mathematical relations of GHG emissions rates and several macroscopic factors, which we obtained by multivariate regression analysis on a large set of empirical trucking data in our previous research, the data-driven emissions rates estimation function is acquired. Then, we link the estimation function of each trip purpose by various kinds of logistics facilities through a qualitative analysis. The eco-facility location problem is modeled by integrating the pure facility location model and the GHG emissions function. The problem is first converted to a biobjective mixed-integer program, and the Particle Swarm Optimization algorithm is applied to solve the model. Through experiments with real case, the effectiveness of the models and algorithms is verified. The eco-facility location model for ULN tends to obtain the environment-friendly location decision. Our analytical results also verify the hypothesis that locations of facility do impact the relevant truck-related GHG emissions, especially to transfer transport, as well as inbound and outbound freight.

Is the Location of Warehouses Changing in the Belo Horizonte Metropolitan Area (Brazil)? A Logistics Sprawl Analysis in a Latin American Context

The location of logistics facilities is important for urban freight transport. Several metropolitan regions have identified that logistics facilities are relocating to suburban areas outside city center boundaries. This phenomenon is known as logistics sprawl. In this paper, we present an analysis of the logistics sprawl phenomenon in the Belo Horizonte Metropolitan Area (Brazil) between 1995 and 2015, through spatial analysis. The results show a logistics sprawl indicator (average change in the standard distance to the center of gravity) of 1.2 km (17.8 km in 1995 and 19 km in 2015). In addition, we explored the spatial correlation between socioeconomic data and the location of warehouses. In 2015, 80% of warehouses were located in the high-income area. Additionally, most of the warehouses were located within a two-kilometer buffer from the axis of the road and in a five-kilometer buffer from the railroad. Finally, we defined the service areas of the warehouses considering a maximum distance through the network of 5, 10, and 15 km. In 2015, the 15-km service area had a coverage of 89% of the population in the study area.

Spatial patterns of logistics facilities in Gothenburg, Sweden

In recent years, the location of logistics facilities, in particular with regard to “logistics sprawl,” has emerged as a topic in the literature that is, a process of spatial decentralisation of logistics facilities in large metropolitan areas. The aim of this paper is to look at logistics sprawl patterns in the Gothenburg metropolitan area, in the south-west of Sweden. Looking at a medium-size monocentric urban region that is also a major port gateway for the country, this study provides novel elements in the study of locational patterns of freight facilities in metropolitan areas. It also provides an opportunity to identify the role of freight in planning, land use and zoning policies. A literature review is carried out on the issues of freight and logistics facilities locational patterns. A quantitative analysis is proposed, using data from Swedish statistics about the number of establishments with a NACE code related to logistics, as well as an original method providing a “cleaned” and more comprehensive dataset. We look at data at two different scales, one metropolitan and one regional, for years 2000 and 2014, as to enable a comparative and diachronical analysis. Logistics sprawl is measured by the average distance of warehouses to their common centre of gravity. Finally, interviews with transport and logistics providers as well as real estate investors and public agencies in the region, add qualitative information on the relative importance of different location factors related to logistics facilities and the issues raised. Logistics sprawl in Gothenburg occurs in specific ways, and differently at the two geographical levels of analysis.

THEORETIC AND METHODOLOGIC BASICS OF DEVELOPMENT OF THE NATIONAL LOGISTICS SYSTEM IN THE REPUBLIC OF BELARUS

The article presents the results of a study, the aim of which is the formation of the theoretical and methodological foundations in the framework of scientific maintenance for the further development processes of the national logistics system in the Republic of Belarus. The relevance of the study relates to the fact that at present the introduction of the concept of logistics and the formation of the optimal infrastructure for its implementation are the key factors for economic development of Belarus as a transit country. At the same time the pace of development of the logistic activities in the country is currently slightly lower in comparison with the neighboring countries, as evidenced by the dynamics of the country’s position in international rankings (in particular, according to the LPI index). Overcoming these gaps requires improved competitiveness of the logistics infrastructure in the international market. This, in turn, is possible due to the clear formulation and adherence of the effective functioning principles for macro logistics system of Belarus, as well as by increasing the quality of logistics design by means of applying econometric models and methods presented in the article. The proposed auctorial approach is the differentiation of the general principles of logistics specific to the logistics systems of all levels, and the specific principles of development of the macro level logistics system related to improving its transit attractiveness for international freight carriers. The study also systematizes the model for determining the optimal location of logistics facilities. Particular attention is paid to the methodological basis of the analysis of transport terminals functioning as part of the logistics centers both in the stages of design and operation. The developed theoretical and methodological recommendations are universal and can be used in the design of the logistics infrastructure for various purposes and functions (including transport-logistics centers, trade-logistics centers etc.).

Logistics Management and Supply Chain Management: A Critical Evaluation

The purpose of this research is to identify the content of Logistics Management and Supply Chain Management, as perceived by course instructors and textbook content, and identify the subjects of the discipline. The study is based on review and content analysis of two samples; 30 syllabi used for teaching a basic course, and 10 textbooks that are dedicated to the discipline. A list of belonging subjects was identified, importance for each subject was estimated, and the level of agreement between the syllabi and the textbook samples was evaluated. Results identified 27 relevant subjects, of which eight were identified as core The subjects are: Information and technology, Inventory, Overview and concepts, Transportation and conveying, Logistics flow, Facility location, Customer service, and Performance measurement. There is a high level of agreement within each sample and between the two samples, with regard to the relative importance of the identified subjects. The above results support an agreed framework for a Logistics Management course, which becomes a common one in different management programs.

Dynamic Coal Logistics Facility Location under Demand Uncertainty

In this paper, dynamic facility location and supply chain planning are studied through minimizing the costs of facility location, path selection and transportation of coal under demand uncertainty. The proposed model dynamically incorporates possible changes in transportation network, facility investment costs, operating cost and changes in facility location. In addition, the time variation and the demand uncertainty for coal in each period of the planning horizon is taken into account to determine the optimal facility location and the optimal production volumes. Computational process and results are presented for the model in a java language. Also, an empirical case study in Shanxi province is conducted in order to investigate the dynamic effects of traffic congestion and demand uncertainty on facility location design and total system costs.

A multi-objective optimization model for sustainable logistics facility location

This paper offers an exploratory study of sustainable facility location. The methodology, based on the classical uncapacitated facility location problem, provides decision makers with a multi-objective optimization model to determine the trade-off among economic, service and environmental considerations. Our results indicate that it may be desirable to open more facilities than optimal from a narrow economic perspective to reduce the carbon dioxide emissions of transport and to improve service reliability.