Corporate Planning Models
Simulation Modeling and Analysis
Simulation Modeling and Analysis
Simulation as an alternative to linear programming
ACM SIGSIM Simulation Digest
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The design of a physical distribution system requires decisions on the number, sizes and locations of warehouses. For each warehouse, one must also address the related issues of which products should be stocked there and which customers it should serve. This paper reviews and critiques the two major approaches for physical distribution planning, namely simulation models and optimization models. These are discussed in light of the various management activities in physical distribution planning and operations. Strengths and weaknesses of the two model types are summarized, and ways suggested in which they may be usefully employed together.