An integer programming model for locating freight villages: An implementation for TCDD

Increasing human population brings about growing human needs day by day. Commerce is a good way that improves the significance of logistics activities and logistics sectors day by day in order to meet growing needs. Growing trading volumes influence the flow of products from suppliers to manufacturers and manufacturers to ultimate customers. At this point freight villages enter into as an important factor to provide the flow. In this context, as a significant logistics transfer center between Asia and Europe, Turkey is supposed to be a logistics center. In this paper, emphasized the decision that the freight villages to be established or not while considering the importance of TCDD freight services.In this regard, the current situation of TCDD freight transportation, freight profile, distribution network and transportation to the logistics villages in 12 seperate locations in 7 regions of Turkey are analyzed. 0-1 integer programming model is developed in order to specify which or how many of those villages to be established. Thereafter, the created model is solved by using LINDO Software Solver and the results are interpreted.