Optimal Location of New Distribution Center in Supply Chain Network Design with Varying Inventory Capacity

Abstract

This paper presents a model that incorporates the concepts of a systems approach (theory of constraints) into supply chain network design to determine the optimal location of a new distribution center in supply chain network design. A Non-dominated sorting Particle Swarm Optimization (NSPSO) Algorithm is proposed to solve the problem at hand and two settings for handling the constraints are, also, presented and compared. Results showed improved results of the proposed formulation over published results especially with respect to the total inventory capacity throughout the supply chain. © Springer-Verlag Berlin Heidelberg 2013.