Optimization of e-commerce distribution center location

Since the COVID-19 pandemic hit last year, countries locked their borders. Thus, international shipping deteriorates drastically. Simultaneously, social distancing increased need for immediate online consumption and fast home delivery. In non-digital world, products still to be shipped destination using trucks, trains, airplanes, ships. requirements volumes of goods, transport costs, external limiting factors, etc., must precisely defined. The article aims find optimal location selection solution based on created mathematical model Modified Steiner-Weber Problem with restrictive conditions. allows central warehouse's minimizes distribution costs from warehouse sub-warehouses/branches located in individual EU countries. has been applied a case study selected e-commerce dealing, which established branches capital cities but does not have an warehouse. Systematization literature sources approaches solving problem center showed that 86% studied companies plan use on-demand warehousing next three five years. Therefore, would preserved. authors noted they do necessarily it in-house. Consequently, fulfillment centers warehouses likely continue significant component future logistics system. This research like stress how important management effective optimization is achieve it. success Amazon US, Europe, Alibaba China genuinely redefined consumer expectations. With emergence services Prime, consumers now expect same-day enabling this evolution mix manufacturing where production are optimal, just-in-time shipping, highly automated centers, mobile connectivity growth. proposed results best storage concerning environment, including minimum annual near Bristol United Kingdom. Eighty-six percent years, combination and, growing extent, connectivity.