Locating Depots for a Food Producer by Solving Uncapacitated Facility Location Problems

We discuss the solution of a depot location problem of a food producer in Switzerland. The overall structure of the distribution system was predetermined by the management to be a two- stage system (plant - depots - customers), with the first stage (transportation of the goods from the plant to the depots) carried out as full-truck-loads and the second stage (from depots to customers) in a less-than-truck-load mode. The problem was formulated as an uncapacitated facility location problem. For this model, we discuss the determination of the necessary data basis, taking especially into account the specific transportation mode on the second stage.