Allocation and Location of Transport Logistics Centres

Abstract

The facility allocation problem sets out to determine the optimal number of facilities to be opened. Based on multiple criteria evaluation, the optimal location of the facilities is usually solved subsequently. Several considerations, e.g. technical parameters, costs and finance must be taken into account. Economic analysis is carried out on the basis of the specific instance of the problem.Let us assume that the number of potentially located facilities is known. Then the problem of the optimal location of a given number of facilities in a network is referred to as the facility location problem. The solution to the problem is a set of facilities optimally located in an area such that this area is fully covered by the required services that the facilities provide. An example of a real-life problem of this type is the location of logistics centers.