Warehouse Relocation or Modernization: Modeling the Managerial Dilemma

At Lockheed Missiles and Space Company's complex in Sunnyvale, California, where approximately 24,000 employees and hundreds of data processing machines consume paper and other types of stationery goods around the clock, storing and distribution costs of these products were evaluated for potential savings using a small-scale mixed integer programming model which selected the most cost-effective location and operational mode.