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Simulation-Based Mapping of Capacity-Dependent General Optimal Market Area Model

Zbigniew Pasek and Marzieh Mehrjoo

The 2010 Summer Computer Simulation Conference (SCSC 10)
Ottawa, Canada, July 11-14, 2010


Summary

This paper presents an approach combining analysis of inventory theory with issues of facility location and capacity planning of a distribution center satisfying its market demand. Shifting away from complex mathematical models to approximate, but novel model of General Optimal Market Area (GOMA), a new model considering inventory cost as a function of capacity selection was developed. As a result, a simulation-based model of new methodology was created to enable further mathematical analysis.


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