Computational Limitations of Dynamic Programming for Warehouse Location: A Comment

practice. Heuristic methods might be used to obtain good, but not necessarily optimal, solutions. Ballou has presented a new dynamic aspect of the warehouse location problem. However, his approach can not handle realistic problems computationally where a company has a reasonable number of warehouses whose locations are interdependent in terms of profitability during a time period. On the other hand, some static solution procedures such as Shycon and Maffei's [2] or Kuehn and Hamburger's [3] can reflect these interdependencies but do not consider the dynamic factors such as demand changes and moving costs. Combination of both approaches in a computationally feasible manner is still in the realm of further research.