Geoscience Reference
In-Depth Information
Chapter 16
Location and Logistics
Sibel A. Alumur, Bahar Y. Kara, and M. Teresa Melo
Abstract
Facility location decisions play a critical role in designing logistics
networks. This chapter provides some guidelines on how location decisions and
logistics functions can be integrated into a single mathematical model to optimize
the configuration of a logistics network. This will be illustrated by two generic
models, one supporting the design of a forward logistics network and the other
addressing the specific requirements of a reverse logistics network. Several special
cases and extensions of the two models are discussed and their relation with
the scientific literature is described. In addition, some interesting applications
are outlined that demonstrate the interaction of location and logistics decisions.
Finally, new research directions and emerging trends in logistics network design
are provided.
Keywords
Forward logistics network design Reverse logistics network design
Models
Applications
16.1
Introduction
Logistics network design (LND) and facility location decisions are closely interre-
lated. The latter are prompted by the need either to build a new logistics network
or to re-design a network that is already in place. When a company enters new
markets or grows into new product segments, a new logistics network has to be
designed. However, “green field” projects are less frequent compared with re-design
initiatives. Changing market and business conditions compel a company to modify
