Development of decision framework for warehouse decisions in supply chain network

Abstract

Warehouse decisions are important and require close attention in supply chain network. It involves a number of important decisions, i.e. ownership decision; feasible locations for the warehouses; optimal number and capacity of the warehouses; size of the warehouses; and finally internal warehouse management. In supply chain network, number of warehouses and locations are considered as supply chain network design decisions and involved in major capital investments and has a long-term effect on the supply chain performance. In this paper, a decision framework is proposed for warehouse decisions in supply chain. In the proposed decision framework, the constant sum model is applied for determination of the priority value for feasible locations and 0?1 integer programming is developed for the determination of optimal number of warehouses and their required capacity in supply chain network.