Designing a Distribution Network Using a Two Level Capacity Location Allocation Problem: Formulation and Efficient Genetic Algorithm Resolution with an Application to a Moroccan Retail Company

Distribution network design as a strategic decision has long-term effect on tactical and operational supply chain management. In this research, a supply chain design problem based on a two level capacity location allocation problem (TLCLAP) is presented. A product must be transported from a set of seaport to meet stores demands, passing out by intermediate warehouses. The objective is to locate the warehouses, allocate warehouse to seaport in the first distribution network level and allocate stores to warehouse for in the second one. The finality is to minimize the global cost of the underlying two-level costs thereby satisfying store demand and warehouse capacity constraints. In this study, a new mathematical model for the twolevel capacitated facility location allocation, with restrictions in the real-world environments of logistics distribution is given. In order to solve the model, an efficient Genetic Algorithm (GA) for TLCLAP in distribution logistic network has been developed for optimal distribution network design.