The location of public logistic centers: an expanded capacity-limited fixed cost location-allocation modeling approach

The location problem considered in this paper concerns the optimal number, size, and location of public logistic centers. To solve this problem, a mathematical model is developed based on an expanded capacity-limited fixed cost location-allocation model of a network incorporating handling costs and the costs of the temporary storage of cargo in the logistic center. The effectiveness of the proposed approach is evaluated with a numerical example of locating public logistic centers of international importance in the Republic of Serbia, based on two scenarios regarding the future development of import cargo flows into the Republic to the year 2020.