A Scalable Algorithm for Locating Distribution Centers on Real Road Networks

Abstract

The median problem is a type of network location problem that aims at finding a node with the total minimum demand weighted distance to a set of demand nodes in a weighted graph. In this research, an algorithm for solving the median problem on real road networks is proposed. The proposed algorithm, referred to as the multi-threaded Dijkstra’s (MTD) algorithm, is then used to optimally locate Wal-Mart distribution centers on the 28-million node road network of the United States with the objective of minimizing the total demand weighted transportation cost. The resulting optimal location configuration of Wal-Mart distribution centers improves the total transportation cost by 40%

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