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%.
Progress in Material Handling Research: 2016
Ghanbartehrani, Saeed and Porter, Jose D., "A Scalable Algorithm for Locating Distribution Centers on Real Road Networks" (2016). 14th IMHRC Proceedings (Karlsruhe, Germany – 2016). 12.