Read this article. In it, a model is presented to help determine the number of distribution centers, their locations, and capacity among other factors. Among the 15 assumptions presented, which do you feel are most important and least important?
Conclusions
In this paper, a new mathematical model to design a
three-level supply chain has been presented by considering the inventory
under uncertain demands, risk-pooling, vehicle routing, transportation
time, and cost. The decision related to the transportation options has
an impact on the transportation time from plants to customers. The
trade-off between cost and time is considered in the formulation of a
mathematical model that minimizes both criteria. Therefore, this model
holding two objectives has been formulated for the first time as a
location-inventory-routing problem with a risk-pooling strategy in a
three-level supply chain. The Lingo software has been used to solve the
given problem. Some future studies are as follows: considering each
parameter as a fuzzy, multi-period planning and solving the presented
model by using heuristic or meta-heuristic algorithms.