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Title: |
Determining a Location of the 2nd Distribution Center: A Case Study of a Paper Distributor in Bangkok |
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Source: |
International Conference on Engineering and Business Management 2012(Part 2 Enterprise Operation and Management（2）)
(pp 985-989)
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Author(s): |
Chumpol Monthatipkul, Graduate School of Management and Innovation, King Mongkut’s University of Technology Thonburi, KMUTT, Bangkok, Thailand |
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Abstract: |
This research proposed a method to determine a location of the 2nd distribution center (DC) of a case study. The main concern was to decrease the total transportation cost in long run. A non-linear programming model was formulated based on the core concept of the Load Distance Technique. It was solved by the Excel Solver with Premium Solver Platform V11 to obtain a local optimal solution. The initial solutions were set by many values in specified ranges and the model was then used to obtain many sets of local optimal solutions.The best local optimal solution was selected to be the location of the 2nd DC. Numerical simulations were then performed to evaluate the results. It was showed that the proposed location of the 2nd DC could significantly decrease the total transportation cost in long run.
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