Methodological Choices in Depot Location Studies

Following a brief introduction indicating that the literature on depot location is extensive, seven choices that face the analyst are discussed. When choosing the objective the choice is between cost minimization or return-on-assets criteria. The potential locations can be anywhere (an infinite set) or restricted to a feasible set. The search procedure employed may be an optimizing one or a heuristic. The planning horizon needs to be determined. The location of current depots may or may not be built into the formulation of the model and the model may or may not include depot capacities. Finally, the modelling of local delivery costs is discussed.