Facility-Location-Optimization

Determining optimal warehouse locations for a new set of supermarkets in Laval, Quebec. This project aims to balance the fixed costs of establishing new warehouses against the variable costs of delivery from these warehouses to the supermarkets.

Project Context

A large supermarket chain in Quebec is expanding with new supermarkets in Laval. While the supermarket locations are set, the warehouse locations need to be identified among several potential sites.

Problem Statement

  • Advantage: Having multiple warehouses reduces the average delivery distance, leading to decreased delivery costs.
  • Challenge: Each warehouse comes with a fixed operational cost.

The primary objective is to determine the ideal number of warehouses and their locations to achieve an optimal tradeoff between delivery costs and warehouse operational costs.

Requirements

  • Gurobi
  • Python