Abstract:

In this paper, the problem of facility location and capacity level selection for facilities with gradual capacities is investigated. By choosing the right facility location with the right capacity, it is aimed to minimize the total cost consisting of fixed operating costs of the facilities and the transportation costs of the goods and services from the facilities to distribution centers. An integer linear programming model is formulated to solve this problem. What makes the difference in this paper is that a new integer linear programming model is proposed to address the problem of the decision to choose between facilities at potential locations in a single-stage supply chain, as well as the transfer of multilevel capacities between facilities or the distribution of new capacities to be included in the system. Thus, idle capacities can be better utilized and transportation costs can be reduced. The impact of COVID-19, which leaves deep marks both in business life and in people's individual life, has broken all the routines of the supply chains. During COVID-19 period, almost all market needs changed and most of the supply chain networks have difficulty to meet the requirements with their existing structure. At this point, a case of a disinfectant manufacturer who wanted to redesign its supply chain was discussed and the introduced model was applied to this case. It is aimed that the investigated case and the adapted model contribute to the solution of similar cases.

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