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A simplified algorithm for the depot location problem

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  • Gizelis, Andreas G
  • Samouilidis, Jesus-Emmanuel

Abstract

This paper describes a simplified optimization algorithm used for the solution of a classical depot location problem as presented in a Greek Manufacturing Company. Algorithms in the literature for this type of problem are based on the assumption of predetermined fixed costs which are independent of the final size of the depots. This assumption is usually far from reality; the size of each depot does not remain constant during the optimization process and so does the associated fixed cost which is variable with the size of the depot. This assumption is relaxed in the proposed algorithm; the associated fixed cost is modified each time a new customer is allocated to a depot thus changing the required depot size.

Suggested Citation

  • Gizelis, Andreas G & Samouilidis, Jesus-Emmanuel, 1980. "A simplified algorithm for the depot location problem," Omega, Elsevier, vol. 8(4), pages 465-472.
    • Handle: RePEc:eee:jomega:v:8:y:1980:i:4:p:465-472
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