A continuous model for productiondistribution system design
The productiondistribution system design problem (PDSDP) involves decisions concerning the structure of a firm's supply chain. An overwhelming majority of the literature uses mixed integer programming formulations in representing such facility design decisions. In this paper, we present an alternative modeling framework, which is based on the use of continuous functions to represent spatial distributions of cost and customer demand. The proposed continuous model allows the derivation of a number of insights about the impact of problem parameters on facility design decisions. It is proposed that discrete and continuous modeling approaches complement each other.
facilities planning and design supply chain management location continuous approximation