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Determining the sites of optimal location of regional logistics centers

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Category: Economy and Management

Last Updated on 07 January 2019

Published on 26 December 2018

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Authors:

L.R.Strutynska, Cand. Sc. (Tech.), Assoc. Prof., orcid.org/0000-0002-0401-5475, Lviv Polytechnic National University, Lviv, Ukraine e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

I.S.Aftanaziv, Dr. Sc. (Tech.), Prof., orcid.org/0000-0003-3484-7966, Lviv Polytechnic National University, Lviv, Ukraine e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

O.I.Strogan, Cand. Sc. (Tech.), orcid.org/0000-0002-1790-6736, Lviv Polytechnic National University, Lviv, Ukraine e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

N.V.Ortynska, Dr. Sc. (Jurid.), Assoc. Prof., orcid.org/0000-0002-5061-5340, Lviv Polytechnic National University, Lviv, Ukraine e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Based on the analysis of the state of logistics network formation in Ukraine, a conclusion is made regarding the relevance of establishing regional logistics centers. The regional logistics centers are to unite scattered logistic business units of production, processing, transportation and trade enterprises of a certain region and increase economic efficiency of their activities. Structurally, apart from logistics and scheduling departments, the regional logistics centers can include regional centers of commodity distribution networks with distributive warehouses, transportation units for providing transport facilities with their own repair, operation and maintenance services and so forth.

The suggested techniques for selecting and optimizing regional logistics center location are based on the ommodeycal relation of expediency of locating logistics centers to a number of geographic and social factors. It takes into account the population density of the region under consideration, cargo and commodity turnover, possibilities of transport and infrastructure provision for the center’s activities and its remoteness from residential areas. The multifunctional mathematical relation of optimization of selecting a site to establish a regional logistics center will allow choosing its location successfully as well as will contribute to increasing its efficiency.

Purpose. To develop methods for defining and optimizing sites of territorial arrangement of functional regional logistics centers of the centralized structure of the logistics network.

Methodology. While developing and studying the mathematical model reflecting dependence of territorial location of a regional logistics center on a range of independent factors, we relied on the theory of scheduling and optimizing a multiple-factor experiment.

Findings. Mathematical relationship has been developed for selecting and optimizing places of territorial arrangement of regional logistics centers. A structure of newly established logistics centers has been suggested; variable factors influencing the expediency of formation of these centers in a particular region have been analyzed. The efficiency of the suggested methods for selecting the location of a regional logistics center has been illustrated using the example of the region of Central Ukraine including Dnipropetrovska, Poltavska, Chernihivska and Kirovohradska Oblasts.

Originality. The idea of establishing regional logistics centers as well as the mathematical model of analysis and optimization of sites of their territorial location has been described by the authors for the first time.

Practical value. The regional logistics centers are to take on the main functional management duties of forming and directing logistics centers of a region as well as duties of pursuing efficient production activities. Development of regional logistics centers will allow increasing the efficiency of logistics networks, make it possible to coordinate ommodties of scattered logistic departments and business units of enterprises of a region. The suggested mathematical model allows making a shrewd choice of a place of locating such a center. While operating a logistics center, the shrewd choice of location will reduce expenditures on transporting goods and cargo.

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