Abstract-The goal of this study is to improve the transportation management of chain store of Bama Company in Mashhad. Currently, there is only one warehouse that covers all the demands of these chain stores. Thus, transportation costs are very expensive and could not be responsive to the demands in a minimum amount time. Therefore, the objectives of this study are to keep transportation costs to a minimum and increase the speed of sales that would lead to a greater assessment of a successful trading business. This problem becomes a Location Routing Problem (LRP). We have proposed a multi objective model and used IBM ILOG CPLEX to solve the numerical case data to obtain the optimal result.
This model, includes the location of each store and their distance to the new proposed warehouses. Finally, we have compared transportation expenses and hidden costs to the company before and after finding the location of the new warehouse.