When was the last time you used planning to determine your distribution network locations?

Are your distribution depots, warehouse or manufacturing facilities situated in the right locations? If not, the result could be dissatisfied customers and a lot of unnecessary costs. In today's competitive world, organization can be successful who have a most productivity with the lowest cost. The distribution industry is no exception. One of the reduce cost method in this industry, having optimal distribution centers and network distribution.

There are three methods of optimization:

(1) Optimized by improving route.

(2) Optimized by determined and improving number of distribution center.

(3) Optimized by both simultaneously (improving route and distribution center).

Most of the time in a distribution system, depot location and vehicle path are interdependent, have shown that the overall system cost may be excessive if routing decisions are ignored when locating depots. Find the optimum location and path overcomes this drawback by simultaneously tackling location and routing decisions. This method integrates vehicle routing and scheduling aspects in the location planning process and combines two difficult problems, facility location and vehicle routing.

The fact that several customers can be served on a single path, provided that the total demand does not exceed the tour capacity, reveals the necessity for determine the location and path simultaneously. In this methodology that is presented as a mathematical model, for improve the location may be some of the centers removed and established a new center that lead to reduction the total system costs and Increase profitability.

This model can be used in Land transportation, Maritime transportation and air transportation and the results will unbelievingly.