APPROACHES TO DISTRIBUTION CENTRE'S LOCATION PROBLEM AND ITS ROLE IN GREEN SUPPLY CHAIN MANAGEMENT

Location represents one of the five integrative areas of a supply chain management that refers to situating of facilit ies within a given space. Facilit ies of each supply chain member differ in the role one plays in supply chain and their objective function. As such, facility location problem solving accounts for different indices included into a model. Distribution centres are facilities of key importance for supply chain management. Proper location decision might add value and create value added that will significantly affect total logistics costs, service level and the whole value chain. An advanced pace in globalization, informat ion technology development and competition results in even faster changes of consumer needs and increased demand uncertainty. This imposes even more challenge for a good location models responsive to the specific needs of the supply chain as a whole. The aim of this paper is to provide a broad review of distribution centre location planning models from the perspective of supply chain design and to address issues these decisions have on environmental and resource utilization.