In fact, building a model with the objective of minimizing overall cost using an optimization concept might be the best way to determine network design, but minimizing overall cost does not always lead to the optimal values of other performance measures, such as service level. Traditionally, the transportation or logistics cost has been considered as a main performance measure guiding logistics network design steps. The primary objective of the traditional logistic network or supply chain design problem is to determine the most cost-effective location of facilities, assignment of lower-level facilities to higher-level facilities, and distribution of products/items throughout the network structure.
Non Technical Summary An integrated logistic network design (ILND) is an important strategic decision that significantly affects the overall performance of supply chain management activities.
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