This paper deals with a centralized warehouse problem with multi-item and capacity constraint. The objective of this paper is to decide the number and location of centralized warehouses and determineorder quantity (Q), reorder point (r) of each centralized warehouse to minimize holding, setup, penalty, and transportation costs. Each centralized warehouse uses continuous review in- ventory policy and its budget is limited. A SA (Simulated Annealing) approach is developed and its performance is tested by using some computational experiments.

• 이동주(공주대학교 산업시스템공학과) | Dongju Lee Corresponding Author