Optimal GMCG Distribution Center Location Problem Along Dual-Track Railway

The objective of this research is to determine the optimal location of fast-moving consumer goods (FMCG) distribution centers along the dual-track railway in each region with the objective of achieving the lowest transportation cost. This research developed a mathematical model as stated objectives and constraints. It is divided into two main parts which are searching the coordinates to optimal location of the regional distribution center along a dual-track railway by center of gravity methodology with coding JavaScript language and calculating the lowest cost of transportation by integer programming with Open Excel Solver programming.  A decision must be made on the amount of FMCG goods transported via road or rail and whether a decision is made to activate regional distribution centers along or not. The constraints of dual-track transportation are limited train cycles and carried to maximum capacity of the train fleet only. The results showed that the lowest transportation cost was approximately 30.7 million baht per month and the volume of FMCG goods transported through regional distribution centers along dual-track railway approximately 20%.

Keywords: Facility location problem, Center of gravity methodology, Integer programming