Designing business logistics networks using model-based reasoning and heuristic-based searching

This article describes an intelligent system called LogNet that provides advice on how to design business logistics networks. It implements its capabilities by utilizing model-based reasoning techniques. In addition, it utilizes heuristic-based searching to guide an end-user toward more effective network designs. The network design problem studied in this article addresses the warehouse facility location problem: how many warehouses are needed in a network and to which customer markets should they be assigned? LogNet enables end-users to incrementally create and test a logistics network design by using a graphical user interface. LogNet employs model-based reasoning procedures that analyze the structure of the current network design in order to offer recommendations on how to consolidate or decentralize a network. The overall goal of LogNet is to provide a flexible user interface that is capable of supporting this design task. q 2005 Elsevier Ltd. All rights reserved.