Facility Location in Supply Chain Design

This chapter begins with a review of classical models including the traditional fixed charge facility location problem, then summarizes more recent research aimed at expanding the context of facility location decisions to incorporate additional features of a supply chain including LTL vehicle routing, inventory management, robustness, and reliability.

Abstract

In this chapter we outline the importance of facility location decisions in supply chain design. We begin with a review of classical models including the traditional fixed charge facility location problem. We then summarize more recent research aimed at expanding the context of facility location decisions to incorporate additional features of a supply chain including LTL vehicle routing, inventory management, robustness, and reliability.