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Supply Chain Design (Collection) by Jay Jayaraman, Peter Cacioppi, Sara Lewis, Michael Watson, Arthur V. Hill, Stephen B. LeGrand, Mark J. Schniederjans

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3. Locating Facilities Using a Distance-Based Approach

As you saw from the examples in the introduction, supply chain network modeling can handle very sophisticated problems. To be able to model, optimize, and develop good solutions to complex supply chains, you need to understand the basics.

In this chapter, we will build on the problem structure developed in Chapter 2, “Intuition Building with Center of Gravity Models,” for Logistica. We will adapt and expand on what we learned by now applying it to a more realistically sized example from the retail industry. We will start with the most basic supply chain network model: optimally selecting “P” facility location(s) considering only distance. This will be your building block for further analysis ...

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