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Beverages 2015, 1(2), 55-69; doi:10.3390/beverages1020055

Facility Location Problem of Beverage Distribution Considering Time Window and Land Use Plan Using GIS

Upper Great Plains Transportation Institute, North Dakota State University, Fargo, ND 58105, USA
Sumadhur Shakya's present affiliation is: California State University, Monterey Bay, Seaside, CA 93955, USA.
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Academic Editor: Edgar Chambers
Received: 5 February 2015 / Revised: 7 April 2015 / Accepted: 14 April 2015 / Published: 20 April 2015
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Abstract

As the boundaries and population of urban areas expand, beverage distributors may seek to expand the capacity in their distribution centers. As a result, they may need to add new locations or increase the utilization of their existing center. This paper investigates the facility location problem through network space, considering traversable truck roads, thereby providing a strategic decision for identifying a depot location in consideration of vehicle routings from a real application. For the analysis, a geospatial tool, which is embedded in the commercial software ArcMap®, was used for routing and calibrating the model. Ten candidates from commercial and industrial zones in the cities of Fargo, West Fargo, and Moorhead were considered for future distribution centers. The candidate locations were analyzed to determine which site minimizes the total transportation costs and travel miles in consideration of time window, vehicle capacity, heterogeneous vehicle types, land use plan, and hours-of-service. Most attractive candidates are close to the intersections of major highways. From the analysis, the study recommends locating a distribution center at three alternatives based on the average ranking method. This study can be used by distributors as they consider new locations and extra depots to support strategic planning to deal with mid-term and long-term growth of demand in beverage markets. This study provides a ready-to-use example of how to adopt state-of-the-art spatial technology and operations research using Geographic Information Systems (GIS), and bring it to state-of-practice. View Full-Text
Keywords: GIS; location; routing; land use; distribution; facility planning GIS; location; routing; land use; distribution; facility planning
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Lee, E.; Dybing, A.D.; Shakya, S. Facility Location Problem of Beverage Distribution Considering Time Window and Land Use Plan Using GIS. Beverages 2015, 1, 55-69.

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