The p-median Facility Location Problem and Solution Approaches

In today’s globalized and increasingly competitive environment, organizations’ need to implement successful strategies for supply chain management has become indispensable. Transportation costs within the supply chain comprise an important part of the organizations’ expenses. For this reason, the strategic selection of location is an issue that directly affects supply chain performance and costs. At this stage, it becomes very important to apply the latest and the best methods to the facility location problem. The focus of this study is the p-median problem and its solution techniques, one of the location allocation problems aimed at minimizing the costs arising from shipments between facilities and demand points.