Bienert, Kurt, "Dynamic Capacity and Location Planning of Physical Distribution Systems", 1981
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The model system is an approach to solve the dynamic multilocation warehouse (or plant) sizing problem by integrating different models and methods: (1) A simulation model of System Dynamics type for analyzing effects of different locations and capacities on demand, cost, and operating results; (2) An Integer Programming model for determining warehouse configurations, i.e. effective locations, and capacities. The model system has been applied to an important German wholesale distributor of pharmaceuticals. It has been used for analyzing the firm’s distribution system, and working out proposals in order to improve it.