TRANSPORT. SAFETY AND ECOLOGY. LOGISTICS AND MANAGEMENT
THE INFLUENCE OF DISTANCE CALCULATION ON THE LOCATION OF CENTRAL WEREHOUSE
- 1 Faculty of Mechanical Engineering, Tuzla, University of Tuzla, Bosnia and Herzegovina
Abstract
Choosing the right warehouse location is very important question which should be considered with great care, because it has a direct influence on the operating cost. For solving this problem many methods are on disposal. According to the way of determination of new warehouse location these methods can be divided in two groups’: qualitative methods and quantitative methods. Quantitative methods are often used in practice from the reason greater objectivity and possibility to analyse obtained results. Most often used methods are: gravity method, load distance method, Weber problem and many others. For calculating of distance in the load distance method two approaches are in use rectilinear distance and Euclidean distance. Neither one of these two approaches credibly describes transport routes because they not taken into consideration any physical obstacles that might occur between potential warehouse locations. With the goal to determine the influence of distance calculation on the result of the load distance method, choice analysis of optimal location of warehouse for retail stores, shops in the urban area was performed and presented.