Abstract
We examine a retail distribution network design problem that considers the strategic decision of determining the number of distribution centers (DC) as well as their type (i.e., central, regional, local), and anticipates the tactical decision of allocating products to different types of DC. The resulting distribution structure is typical for grocery retailers that choose to operate several types of DC storing a distinct set of products each. We propose a novel model considering the decision-relevant costs along the retail supply chain and present a case study of a major European retailer.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Hübner, A., Kuhn, H., Sternbeck, M.: Demand and supply chain planning in grocery retail: an operations planning framework. Int. J. Retail Distrib. Manag. 41(7), 512–530 (2013)
Holzapfel, A., Kuhn, H., Sternbeck, M.: Product allocation to different types of distribution center in retail logistics networks. Eur. J. Oper. Res. 264(3), 948–966 (2018)
Geoffrion, A.M., Graves, G.W.: Multicommodity distribution system design by benders decomposition. Manag. Sci. 20(5), 822–844 (1974)
Hindi, H.S., Basta, T.: Computationally efficient solution of a multiproduct, two-stage distribution-location problem. J. Oper. Res. Soc. 45(11), 1316–1323 (1994)
Pirkul, H., Jayaraman, V.: A multi-commodity, multi-plant, capacitated facility location problem: formulation and efficient heuristic solution. Comput. Oper. Res. 25(10), 869–878 (1998)
Salehi, N., Torabi, S., Sahebjamnia, N.: Retail supply chain network design under operational and disruption risks. Transp. Res. E Logist. Transp. Rev. 75, 95–114 (2015)
Tsao, Y., Lu, J.: A supply chain network design considering transportation cost discounts. Transp. Res. Part E 48(2), 401–414 (2011)
Kariv, O., Hakimi, S.: An algorithmic approach to network location problems. II: the p-medians. SIAM J. Appl. Math. 37(3), 539–560 (1979)
Fleischmann, B.: The impact of the number of parallel warehouses on total inventory. OR Spectr. 38(4), 899–920 (2016)
Oeser, G.: What’s the penalty for using the square root law of inventory centralisation? Int. J. Retail Distrib. Manag. 47(3), 292–310 (2019)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Holzapfel, A., Kuhn, H., Potoczki, T. (2020). Design of Distribution Systems in Grocery Retailing. In: Neufeld, J.S., Buscher, U., Lasch, R., Möst, D., Schönberger, J. (eds) Operations Research Proceedings 2019. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-030-48439-2_85
Download citation
DOI: https://doi.org/10.1007/978-3-030-48439-2_85
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-48438-5
Online ISBN: 978-3-030-48439-2
eBook Packages: Business and ManagementBusiness and Management (R0)