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The Importance of the Facility Location Techniques to Assist Companies in Decision-Making for the Installation of Logistics Hub

DOI: 10.4236/ojbm.2024.121006, PP. 79-89

Keywords: Facility Location Problem, Logistic, Logistics Corridors, Multi-Criteria Method

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Abstract:

The Facility Location Problem (FLP) is fundamental for companies seeking to optimize their logistics operations and gain a competitive advantage. In this context, the selection of locations for factories, warehouses, distribution centers and logistics centers is one of the main approaches used to reduce logistics costs. This study performed a literature review on FLP and explored how FLP techniques can be applied to solve location problems for logistics hubs. Furthermore, the research sought works related to the main methods of multi-criteria analysis for decision making. The research was carried out by searching two databases, Google Scholar and Scopus. Although the literature presents several methods for solving FLP, the P-median method was well accepted for applying FLP in the selection of locations for logistics centers, as well as the help of multi-criteria methods to, together with FLP, bring greater accuracy in making decisions. The objective of this study was achieved by highlighting the importance of FLP techniques and how they can help companies in making decisions to install logistics hubs, considering multimodal integration, distance and cost optimization. This work was exploratory and theoretical in nature, using a quantitative approach to generate data and support discussions on the topic.

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