Terminal Location Problem: A Case Study Supporting the Status Quo

This paper applies a single-facility location model to the distribution network covered by the Brantford, Ontario branch of Thibodeau-Finch Transport Ltd. The model is used to determine whether or not the present terminal location should be maintained for the current demand structure and for a projected demand structure. Optimal locations are obtained for both demand structures using a distance function that is tailored to the actual road network over which the firm's vehicles travel. It is found that the transportation costs associated with the optimal locations are sufficiently close to those with the present location to conclude that Thibodeau-Finch should not consider relocation among its strategic options. The paper includes relevant data for verifying the conclusions drawn in support of the status quo.