Locating spare part warehouses using the concept of gradual coverage - A case study

Klaus Reinholdt Nyhuus Hansen, Martin Grunow

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    Abstract

    In covering problems demand is usually covered by a facility, if it is less than a certain distance away., but if the distance is greater, none of the demand is covered. With gradual coverage, a fraction of the demand can be covered between an upper and lower distance. In this paper a case study for MAN Diesel SE is presented, where gradual coverage has been used for locating warehouses for spare parts. In particular it is described, how coverage decay functions are found, which identifies customers’ reaction to the offered ’speed of delivery’ and ’total order cost’. With these functions, demand at each demand node, given which candidate site supplies that node, can be found. A MILP model is developed, that also considers modality selection.
    Original languageEnglish
    Title of host publicationLogistics Management 2009
    Publication date2009
    Publication statusPublished - 2009
    EventLogistics Management - Hamburg, Germany
    Duration: 1 Jan 2009 → …
    Conference number: 140

    Conference

    ConferenceLogistics Management
    Number140
    CityHamburg, Germany
    Period01/01/2009 → …

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