Selecting the location of distribution centre in logistics operations : a conceptual framework and case study
Thai, Vinh Van
Date of Issue2005
School of Civil and Environmental Engineering
This paper presents the outcomes of a study of the choice of location for distribution centres in logistics operations. A conceptual framework of location selection for distribution centre is worked out through three main stages. At the first stage, a general geographical area for distribution centre is identified based on the Centre of Gravity principle, taking into consideration socio-economic factors. The second stage of the selection process involves the identification of alternative locations for the distribution centre and the airports and seaports to be used for inbound and outbound cargo flows within the defined general geographical area. The third stage focuses on specific site selection among the identified alternative locations for the distribution centre based on the quantitative approach. This involves a mathematical model which aims to optimise either the total distribution cost or the integration of total distance transport with given relevant volumes of cargo. In order to illustrate the conceptual framework, a case study of a logistics service provider will be provided. Data from the case study proved that the conceptual framework for selection is valid and can be of value to logistics companies in their operations and management.
DRNTU::Engineering::Maritime studies::Maritime management and business
Asia pacific journal of marketing and logistics
© 2005 Emerald. This is the author created version of a work that has been peer reviewed and accepted for publication by Asia Pacific Journal of Marketing and Logistics, Emerald. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [DOI: http://dx.doi.org/10.1108/13555850510672359 ]