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Location of a Logistics Facilities Using MS Excel Solver Multistart GRG and Evolutionary Methods

Zaręba M.

Machine Dynamics Research

2018

Vol. 42, No. 4

73--91

The aim of this article is to determine the logistics facility localization by using generalized reduced gradient (GRG) nonlinear and evolutionary methods, both available in Solver Addin for MS Excel. The goal of supply chain configuration strategy is to minimize logistics expenses and to optimize customer service. The article presents three approaches for determining the optimal location of a logistics facility. The first method is to determine the optimal location of a short-haul routes logistics facility, without taking into account the curvature of the Earth, using the GRG nonlinear method. The second is an extension of the previous method and utilizes the built-in Multistart option, which allows to determine the optimal position of the logistics facility in the case of many local extremes in the goal function. The third approach applies the evolutionary method which allows to locate the logistics facility in the case where the goal function is in the non-smooth form. For each of the aforementioned approaches, the location of the logistics facility was determined. Based on the obtained results both GRG Multistart nonlinear and evolutionary methods correctly calculated the optimal location of the logistics facility for short-haul routes.