Optimizing inventory decisions in facility location within distribution network design

Abstract

In this paper an approach to apply inventory decisions in facility location problem is presented. In fact, there are many models which are concerned with some of the inventory decisions in distribution network design and most of them shortly utilize inventory elements. The contribution is to minimize total establishment, transportation and inventory costs in a multi-commodity single-period distribution system and is supported by a case study to be implemented and the solutions are followed. The demand of customer is assumed to be deterministic.