An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results (original) (raw)

This paper presents an integrated inventory-location model designed to optimize both the number of distribution centers and the inventory levels at these centers, addressing challenges in modern inventory management intensified by e-commerce. Motivated by the inefficiencies observed in a local blood bank's distribution system, the model incorporates variables such as order shipment costs and safety stock to enhance service levels and reduce inventory-related waste. The findings suggest significant improvements in operational efficiency and decision-making for inventory management in both blood supply and broader supply chain contexts.