Logistics Village Location with Capacity Planning Problem, an MILP Model Approach

The optimal location for establishing logistics centers is of great importance in reducing costs and improving supply chain efficiency. This paper aims to provide a conceptual framework finding the capacity village establishment using mixed-integer linear programming (MILP). proposed model applied on Qazvin province, Iran, as developing country with strategic international transport corridors. Unlike previous research, approach considers various operations such warehousing, refrigeration, sorting, packaging, along their capacities distinct decision variables. study area divided into 6972 blocks 1.5 × km, which 59% are infeasible excluded due environmental natural hazard constraints. MILP then GAMS each feasible block identify best alternatives logistic maximum total profit. Based results, freight imported province directly transferred final destinations without visiting village, while around 98% exports would first enter get service before delivering customers.