Logistics Application for the Capacited Facility Plant Location Model for Distribution Centers

Abstract

The location and allocation facilities problems are frequently used in different areas within organizations to improve the logistics of process flow, in order to achieve their strategic objectives in the short, medium and long term. A proper analysis of facility location problems allows companies to make efficient decisions to minimize distribution costs, and streamline operational times, and as a result, companies evolve and rebound towards growth. This work focuses on the facility allocation and location problem using the Capacitated Facility Plant Location (CFPL) model to solve a distribution problem and locate a supply center. It is applied for an instance of a set of 25 cities in a geographic area of ??Mexico, particularly the State of Puebla. Because the CFPL is a mixed integer programming problem, the Branch and Bound method was used through the Lingo software to have a distribution logistics network system.