A heuristic algorithm for the location and dimensioning of warehouses (original) (raw)

Abstract

"A heuristic algorithm is presented for locating and dimensioning warehouses which is sufficiently flexible to incorporate the variability and particularities of developing countries, including capacity constraints. The goal is to minimize warehousing and transportation costs. To attain this objective we use an out-of-kilter algorithm determining the flow with minimum total cost. As we consider economies of scale, unit costs at each arc are a function of the flows, i.e. the problem is actually non-linear. To establish the values of unit costs we use an iterative procedure. The method converges but not necessarily to a global optimum, so that a sub-routine called DROP is used as a second part of the heuristic procedure. "

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