Research Reports from the Department of Operations

Document Type

Dissertation

Publication Date

8-1-1982

Abstract

This paper presents a methodology for designing an effective two-echelon multicommodity distribution network. Addressing key logistics issues, such as warehouse location and product distribution, the model integrates cost and service trade-offs, regional warehousing practices, and shipment alternatives. Unlike previous models, this approach offers comprehensive problem representation and accurate cost structure, enhancing solution quality and flexibility. Using a linear programming (LP) approach, it generates solutions within 3% of the optimum for all tested cases. Comparative evaluation against existing models highlights its superior problem representation, computational efficiency, and analytical versatility. The study emphasizes the importance of a global consideration of design alternatives to identify cost-saving opportunities that are often overlooked by less detailed models. The proposed methodology proves to be an effective tool for strategic planning in complex distribution networks, addressing management concerns over solution validity and computational performance.

Keywords

Operations research, Industrial management--Mathematical models, Network analysis (Planning), Supply chain management, Linear programming, Business logistics--Planning, Business logistics--Decision making, Physical distribution of goods

Publication Title

Dissertation/Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 531 ; Submitted in partial fulfillment of the requirements for the Degree of Doctor of Philosophy.

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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