Multi-period distribution center location and scale decision in supply chain network

- This study extends a problem on locating distribution centers under uncertainty.
- The decision on facility size is considered.
- This study is oriented to multiple period decision contexts.
- A mixed-integer programming model as well as lower, upper bounds are developed.

This study extends a traditional problem on locating distribution centers (DC) under uncertain demands, and proposes a stochastic programming model on locating DCs, determining their suitable scales, as well as adjusting DCs so as to adapt to the dynamically changing demands at the sites of retailers. Some lower and upper bounds are also designed to analyze the values of the perfect information, stochastic solution, and the DC adjustments. Numerical experiments are conducted to validate the effectiveness of the proposed model.