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An Overview of Representative Problems

Krarup & Pruzan [27] have reviewed research on traditional facility location models that aim to minimize the sum of the fixed facility location and transportation costs by choosing the optimal facility locations among given probable sites to serve a set of customers. The objective function and constraints of these models are linear, but the resulting problems are NP-complete.

Melo, Nickel and Saldahna [25] have reviewed facility location models in supply Chain and they focused more on integration of location decision along with other decision variables in the supply chain design.

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They noted that the role of facility location is decisive in supply chain network planning and this role is becoming more important with the increasing need for more comprehensive models that capture the real life constraint scenarios in detail.

Leyla, Mark & Collette [29] in their recent publication claimed first work in the logistics literature that analyzes the potential savings that can be achieved by allowing a retailer to be sourced by more than one warehouse. They have proposed to leverage information technology to maximize the potential benefits.

Huang et al. [30] paid attention to the opportunity of getting lower supplier prices by locating the warehouse correctly. In that theory, the optimal locations gravitate towards locations of the suppliers offering lower prices. However, if the price variability is high, the optimal location moves towards the demand’s center of gravity. In those cases, it is beneficial for the organization to keep the location near that center of gravity and pay less attention to the supplier prices and supplier locations.

The Research Problem:

Many business managers are intending to answer following questions in the Post GST Scenario: “Will GST implementation enable supply chain network redesigning and Warehouse consolidation? Is it possible to create economic value and competitive advantage by altering the existing network to the more efficient one?”

This project aims to study possible benefits of restructuring the warehouse network for a Food product company for their North India region in post GST set up.