Models in Logistics Management

Various quantitative models from the Operation Research Literature can be used to address the decision areas in Logistics. Location models:- These models help in planning the optimal location of plant or warehouses, considering the inbound and outbound transportation costs and infrastructure cost at the locations. Allocation models:- These models help in optimally allocating commodities from sources to destinations in a multiple sources, multi destination environment. The costs consider for optimization are the production cost, transportation cost and warehousing. Distribution network design models:- These models are usually comprehensive in nature deciding between a two, three or even four stage distribution network, location of warehouses and break bulk points and sometimes even the transport mode choice. Inventory models:- Inventory models play a key role in Logistics Management. The inventories that are directly affected due to outbound logistics are Finished