The Retailer Facility Location Problem

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The Retailer Facility Location Problem
Donald B Rosenfield
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- 1 ;-* n-sv. •> :£ . '■ism : I ^o" - . ? -3 corresponding to a given set o-F -facility locations can be rapidly •formulated and solved. The remainder of this paper is organized as -follows: In the next section, the retailer -facility location is -formulated, re-flecting the simpli-fied transportation problem obtained -for a set o-f -fixed ■facility locations and a partial relaxation o-f the unique assignment o-f facility to individual stores or store zones. We also describe why the partial rel...axation maintains a simple form of the transportation problem but does not, in practice, yield infeasible solutions. In section 3, we describe the dual— based approach to the solution. In section 4, we describe the case study application of the approach and the flexible coordinate system approach for identifying facility locations. Finally, in section 5, we describe an analogous approach for locating warehouses in a manufacturing and distribution network. Again, by partial relaxation of the unique assignment of customers to warehouses, we still stipulate that any merchandise obtained by a customer from a warehouse be the correct mix of product requirements.

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