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Modelling and analysis for capacity expansion planning in warehousing

Author

Listed:
  • G Cormier

    (Université de Moncton)

  • E A Gunn

    (Dalhousie University)

Abstract

In this paper, a dynamic programming model is developed for the purpose of establishing a warehouse capacity expansion schedule and underlying multi-item inventory policy that are jointly optimal. The optimal warehouse size over any segment of the planning horizon is obtained by solving a nonlinear optimisation problem, this being accomplished efficiently by exploiting the Kuhn–Tucker conditions. Repeating this procedure between each pair of time periods results in a discrete state space, so that the optimal capacity expansion schedule corresponds to a shortest path in a network. Managerial insights are provided through experimentation with the model.

Suggested Citation

  • G Cormier & E A Gunn, 1999. "Modelling and analysis for capacity expansion planning in warehousing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(1), pages 52-59, January.
    • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:1:d:10.1057_palgrave.jors.2600671
    DOI: 10.1057/palgrave.jors.2600671
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    Citations

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    Cited by:

    1. Song, Shuang & Govindan, Kannan & Xu, Lei & Du, Peng & Qiao, Xiaojiao, 2017. "Capacity and production planning with carbon emission constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 132-150.
    2. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2010. "Research on warehouse design and performance evaluation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 203(3), pages 539-549, June.
    3. Mørch, Ove & Fagerholt, Kjetil & Pantuso, Giovanni & Rakke, Jørgen, 2017. "Maximizing the rate of return on the capital employed in shipping capacity renewal," Omega, Elsevier, vol. 67(C), pages 42-53.
    4. Brandon Poiencot & Christopher Brown, 2011. "An Optimal Centralized Carbon Dioxide Repository for Florida, USA," IJERPH, MDPI, vol. 8(4), pages 1-21, March.
    5. E Aghezzaf, 2005. "Capacity planning and warehouse location in supply chains with uncertain demands," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(4), pages 453-462, April.

    More about this item

    Keywords

    warehousing; capacity expansion planning;

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