An Analysis of Locating Agricultural Logistics Center in Isfahan Province Using the Logistics Network Costs Minimization Approach in GIS Environment

مجله اقتصاد و توسعه کشاورزی

Article 3, Volume 35, Issue 1 - Serial Number 51, April 2021, Pages 31-45   

Document Type: Research Article

DOI: 10.22067/jead.2021.17797.0

Authors

A. Jalaei; N. Akbari^* ; B. Safari

Department of Urban and Regional Economics, University of Isfahan, Isfahan, Iran

Abstract

Introduction: Annually, large quantities of agricultural products are wasted and a lot of damage is done to the country's financial and food resources. The most important causes of this waste are related to the various sectors of transportation, packaging, storage, processing and distribution of agricultural products. One significant tool to increase in supply chain productivity and reduce logistics costs of the agricultural sector is to establish agricultural logistics centers. The current study seeks to identify a suitable area for the construction of an agricultural logistics center in Isfahan province. In this regard, criteria affecting the selection of locations for logistics centers (compensatory and non-compensatory) were first identified and then the process of locating was implemented in two separate phases. In the first phase, in order to identify potential site options for a logistics center within the province, geographical boundaries associated with non-compensatory criteria were excluded from the study. In the second phase, according to the mathematical model presented, the cost of establishing a logistics center was calculated in possible sites in terms of compensatory criteria and then relevant geographic data layers were developed and, at the end, all data layers were integrated.
Materials and Methods: This paper, first, studies the experimental literature in the field of successful logistics centers across the world as to identify criteria affecting the location of agricultural logistics centers in terms of non-compensatory grammatical (geological and environmental factors) and compensatory (measurable factors with quantitative values) criteria. Next, the process of locating is implemented during two stage. In the first stage, in order to identify possible sites for Logistics Park within the province, geographic data layers associated with non-compensatory criteria are gathered and the respective boundaries are excluded from the study. Note that in order to unify mapping units being studied with respect to 1: 2500000 scale map of analytical maps used, the province is divided into 4510 separate blocks of 25 Km². For the second stage, based on the general framework of logistics activities, the spatial analysis is carried out for load flows (the production and consumption profiles) of agronomic, horticultural and livestock. According to the location theories in minimizing costs, a mathematical model is developed to compute costs of agricultural logistics center establishment per each 1440 blocks located in potential sites in terms of compensatory criteria and then under the Arc GIS software environment, all data layers related to these criteria are developed and integrated. The best option is to install a block logistics center having the minimum cost. Due to the large volume of data gathered as well as the variety of analysis and calculation units (blocks of 25 Km²), the C⁺⁺ programmer is used to perform algebraic and matrix calculations. (Road and rail) distances applied in the model for different origins and destinations are calculated and extracted as the distance of the network through the Arc GIS software. Raw data of road bill of lading blocks have been obtained from the Road Maintenance and Transportation Organization of Isfahan for the period between 2013 and 2018 for the commodity groups including agronomic, horticultural and livestock
Conclusion: The most optimal (least expensive) area for the establishments of an agricultural logistics center is located in the west of the urban complex of Isfahan and between the counties of Tiran and Karvan, Najafabad and Lenjan. The proposed area acts as an intermediary between the production centers of agronomic, horticultural and livestock products in the west of the province and the urban complex of Isfahan as a major consumer of agronomic, horticultural and livestock products. Proximity to the west-north freeway makes it possible to send the province's surplus products to the northern and eastern provinces of the country.
 

Keywords

Agricultural Logistics center; Compensatory and non-compensatory criteria; Location; Spatial distribution of Load Flows; Supply chain

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