A note on the economic sizing of warehouses a linear programming approach

Abstract

In the past, researchers presented a linear programming formulation for the economic sizing of warehouses when demand is highly seasonal and public warehouse space is available on a monthly basis. The static model was extended for the dynamic sizing problem in which the warehouse size is allowed to change over time. By applying simplex routine, the optimal size of the warehouse to be constructed could be determined .In this paper, it is shown that for the static model, the optimal size could be determined more easily by calculating and comparing the costs associated with only a few values for the sizes of the private warehouse. The number of costs to be calculated is equal to the number of time periods in the planning horizon plus one. The dual of the dynamic model is shown to be a network problem.