Future-Value Assessment of a Multi-Facility Allocation Problem with Inventory Return Costs

  • Jonathan David Aguirre Bello Universidad Popular Autonoma del Estado de Puebla
  • Oscar Flores Carreto Universidad Popular Autonoma del Estado de Puebla
  • Ninfa Alejandra Guzmán Velasco Universidad Popular Autonoma del Estado de Puebla
  • Ricardo Ernesto Morales Guerrero Universidad Popular Autonoma del Estado de Puebla
  • Santago Omar Caballero Morales Universidad Popular Autonoma del Estado de Puebla https://orcid.org/
Keywords: multi-facility allocation problem, inventory control, future value, logistics

Abstract

Decision models within the logistic field are crucial for the optimization of economic resources throughout the supply chain. In this context, facility allocation is important to achieve an efficient distribution network. The present work extends on the multi-facility allocation problem by integrating the time-dependent costs associated to the dynamic behavior of inventory management and transportation through a planning horizon. These costs are evaluated by considering their future-value in different periods of time and an integrated cost metric which includes distance, supply frequency, and fuel performance. The contribution of this approach leads to support the decision process regarding the viability of the investment required to establish a set of facilities in terms of future costs, how these costs may increase if the decision is delayed, and when the investment is to be compensated by the savings obtained by the solution of the multi-facility allocation problem.

Published
2021-05-01
How to Cite
Aguirre Bello, J. D., Flores Carreto, O., Guzmán Velasco, N. A., Morales Guerrero, R. E., & Caballero Morales, S. O. (2021). Future-Value Assessment of a Multi-Facility Allocation Problem with Inventory Return Costs. International Journal of Combinatorial Optimization Problems and Informatics, 12(2), 25-31. Retrieved from https://ijcopi.org/ojs/article/view/208
Section
Articles