Depot Location (Distribution 2): Where Should New Depots Be Built


Parameters

Table 20.4 shows the additional parameters that are used in this example.

Table 20.4: Parameters

Parameter Name

Interpretation

open_cost[depot]

Monthly costs for opening each depot (in £)

close_savings[depot]

Monthly savings for closing each depot (in £)

expand_throughput[depot]

Potential monthly throughput per depot (in tons)

expand_cost[depot]

Monthly costs for expanding each depot (in £)

max_num_depots

Maximum number of depots allowed to be open