A Warehouse Location Model Helps Texas Comptroller Select Out-of-State Audit Offices

To enhance the collection of sales and other taxes due the State of Texas, the Comptroller uses tax audits of companies doing business in Texas. Auditors make frequent trips to company headquarters in New York, Chicago, Tulsa, Los Angeles, and other cities. To find out how much out-of-state offices would cost and where they should be located, a location-allocation network model developed for warehouse location distribution system design was used. Six cities were agreed upon for locations.