Scientific paper ID 946 : 2014/4

The logistical network ensures the movement of the materials flows from the source to the customer. The location of the centres depends on: population, transport infrastructure, satisfaction of clients. An option is accepted that only one distribution centre is needed.Just sources and customers (District Centre) and the future distribution centre are considered for the purpose of simplifying the model. A summarized model of defining the necessary distribution centre is considered to provide the service on the territory of the state, using the Euclid metrics in measuring the distance between unspecified customers’ points. Their demand for the product is generated on the basis of the population at the certain point, the transport costs, calculated on the basis of measuring the distances by using the accepted metrics. Possible criteria for choosing the location of the distribution centre in this theoretical model could be considering the minimum transport costs (minimizing the overall transport work).

The materials flow could be either a raw material or a ready product. The kind of load, the type of vehicle and the loading place are not taken into account. The time of delivery, the storage and processing costs are not taken into consideration as well. Therefore the unit price is not calculated.