IDENTIFYING WAREHOUSE LOCATION USING HIERARCHICAL CLUSTERING

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Transport Problems

Silesian University of Technology

Subject: Economics, Transportation, Transportation Science & Technology

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VOLUME 11 , ISSUE 3 (September 2016) > List of articles

IDENTIFYING WAREHOUSE LOCATION USING HIERARCHICAL CLUSTERING

Sebastjan ŠKERLIČ * / Robert MUHA

Keywords : warehouse site selection, automotive industry, hierarchical clustering

Citation Information : Transport Problems. Volume 11, Issue 3, Pages 121-129, DOI: https://doi.org/10.20858/tp.2016.11.3.12

License : (CC BY-SA 4.0)

Received Date : 01-January-2015 / Accepted: 01-September-2016 / Published Online: 27-February-2017

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Summary. Identifying the optimal warehouse location involves a series of qualitative and quantitative factors. The purpose of this study was to use hierarchical clustering to identify the optimal location for a warehouse, which would ensure the lowest cost, a high level of quality in supplying customers and connect the selling and purchasing activities of the businesses operating in the Slovenian automotive industry into a system. The study also aims to demonstrate the applicability of the selected method for identifying warehouse locations in more demanding cases because the very process of identifying a location is dependent upon a company's logistic strategy. The advantage of the method used in this study is that it enables the user to use a combination of the data that is the most important for a company in a given period as well as consistent with the company's chosen business strategy.

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