Multi Period, Single Commodity and Single Stage Warehouse Location Problem with Location, Distribution Inventory and Shortage Costs

In this paper we solve a single stage warehouse location, distribution problem with inventory and shortage costs. This is an extension to the work of Sharma (1991) [1] as it considered only inventory carrying costs and did not consider shortage costs. For the general problem of shortage costs (along with warehouse location, distribution problem with inventory costs), we use the method given by Vimal Kumar (2012) [2] to eliminate shortage costs, and this results in several computational advantages. Next, we add linking constraints, so that problem is amenable to be solved by Lagrangian method as here sub problems are easily solvable. Few extensions of this problem is considered.