Models, facility location/capacity allocation

Use optimization for facility location and capacity allocation decisions. Gravity location models identify a location that minimizes inbound and outbound transportation costs. They are simple to implement but do not account for other important costs. Network optimization models can include contribution margins, taxes, tariffs, production, transportation, and inventory costs and are used to maximize profitability. These models are useful when locating facilities, allocating capacity to facilities, and allocating markets to facilities. 

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