A Note on the Economic Sizing of Warehouses: A Linear Programming Approach

Rao, A and Rao, M R (2012) A Note on the Economic Sizing of Warehouses: A Linear Programming Approach. Working Paper. SSRN. (Unpublished)

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Abstract

In the past, researchers presented a linear programming formulation for the economic sizing of warehouses when demand is highly seasonal and public warehouse space is available on a monthly basis. The static model was extended for the dynamic sizing problem in which the warehouse size is allowed to change over time. By applying simplex routine, the optimal size of the warehouse to be constructed could be determined. In this paper, it is shown that for the static model, the optimal size could be determined more easily by calculating and comparing the costs associated with only a few values for the sizes of the private warehouse. The number of costs to be calculated is equal to the number of time periods in the planning horizon plus one. The dual of the dynamic model is shown to be a network problem.

Affiliation: Indian School of Business
ISB Creiators:
ISB Creators
ORCiD
Rao, M R
UNSPECIFIED
Item Type: Monograph (Working Paper)
Additional Information: The research article was published by the author with the affiliation of Indian Institute of Management Bangalore.
Uncontrolled Keywords: Economic Sizing, Warehouses, Linear Programming
Subjects: Economics
Applied Statistics and Computing
Depositing User: Veeramani R
Date Deposited: 03 Apr 2019 15:28
Last Modified: 03 Apr 2019 15:36
URI: http://eprints.exchange.isb.edu/id/eprint/752
Publisher URL: http://dx.doi.org/10.2139/ssrn.2175403
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