An Analysis of the Logistics Hub Location in Isfahan Province Using the Logistics Network Cost Minimization Approach in GIS Environment

One of the important tools to increase supply chain productivity and reduce logistics costs is to establish logistics hubs. Since there is no logistics hub in the central region of Iran, this study was conducted to identify a suitable area for a logistics hub in Isfahan province. In this line, criteria influencing the location of the logistics centers in terms of certain limiters (geological and environmental factors) and cost influencer (measurable factors with quantitative values (compensation criteria)) criteria were identified, and then, the process of locating was implemented in two separate phases. In the first phase, geographical boundaries associated with limiters criteria were excluded from the study scope to identify the potential site options for a logistics hub within the province. In the second phase, the mathematical modeling approach was used to model the total cost of the logistics network. Next, the cost of establishing a logistics hub was calculated in possible sites in terms of cost influencer criteria and using geographic data layers. The findings revealed that the optimum location is in the central part of the province, where all the economic activities are concentrated. Still, rail and road infrastructures and industries are the most influencers in the optimum location.