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The location of public logistic centers: an expanded capacity-limited fixed cost location-allocation modeling approach
Authors:Milosav Georgijevic  Dejan Brcanov
Institution:1. Department of Mechanization and Construction Engineering, Faculty of Technical Sciences , University of Novi Sad , Trg D. Obradovica 6, 21 000 , Novi Sad , Serbia;2. Department of Information Systems and Quantitative Methods, Faculty of Economics , University of Novi Sad , Serbia
Abstract:The location problem considered in this paper concerns the optimal number, size, and location of public logistic centers. To solve this problem, a mathematical model is developed based on an expanded capacity-limited fixed cost location-allocation model of a network incorporating handling costs and the costs of the temporary storage of cargo in the logistic center. The effectiveness of the proposed approach is evaluated with a numerical example of locating public logistic centers of international importance in the Republic of Serbia, based on two scenarios regarding the future development of import cargo flows into the Republic to the year 2020.
Keywords:facility location  location–allocation model  logistic centers  distribution costs
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