Model for Determining the Optimum Location for Performance Improvement in Supply-Chain Strategies

• Main Author: Ramona Iulia ȚARȚAVULEA (DIEACONESCU)
• Format: Article
• Language: English
• Published: Academy of Economic Studies (ASE) 2015-06-01
• Series: European Journal of Interdisciplinary Studies
• Subjects: supply chain strategy; optimum location; informatics solution; mathematical optimization
• Online Access: http://www.ejist.ro/files/pdf/392.pdf

The economic crisis which started in 2007 has caused damaging effects to most international companies. In several EU countries, foreign investments decreased and international companies closed or relocated production and/or distribution centres, due to cost reduction measures. This paper is aiming to demonstrate that applying a performant solution in defining the supply chain strategy can be a low cost process, which can generate positive effects on the sales and revenues. The research objective is to present a concrete solution for redesigning the supply chain, in order to achieve the optimal delivery strategy. The solution implies the use of mathematic methods, for determining the optimum location for placing a central warehouse, in a geographic region. The use of an optimum delivery strategy leads to lower depositing and transport costs, which generates positive effects on sales, by offering more competitive prices on products. The main contribution of the author is the development of a model, used to identify the optimal location for placing a central warehouse.