facility location ops 370. where would you locate? amusement park pharmacy distribution center...
TRANSCRIPT
Facility Location
OPS 370
Where Would You Locate?
Amusement Park
Pharmacy Distribution Center
Chemical Plant
Facility Location
Types of Facilities
• 1. Heavy Manufacturing– Ex. Auto plants, steel mills, chemical plants
• 2. Light Manufacturing– Ex. Electronics assembly
• 3. Warehouse & Distribution Centers• 4. Retail & Service Facilities
Factors for Heavy & Light Manufacturing
Factors for Warehouse & DC
Factors for Retail & Service
Location Analysis Techniques
• 1. Center-of-Gravity Heuristic– A. Identify a point that achieves low transportation cost
based on straight line distances
• 2. Location Factor Rating– A. Compare and rate specific sites based on various
factors
Center-of-Gravity Heuristic
Center-of-Gravity Heuristic Formulas
where,x, y = coordinates of the new facility at center of gravityxi, yi = coordinates of supplier or customer iVi = annual load weight shipped from supplier or to customer i
n
Vi
i = 1
xi Vi
i = 1
n
x =n
Vi
i = 1
yiVi
i = 1
n
y =
x1 x2 x3 x
y2
y
y1
y3
1 (x1, y1), l1
2 (x2, y2), l2
3 (x3, y3), l3
Center-of-Gravity Example
CustomerA B C D
xi 200 100 250 500yi 200 500 600 300Vi 75 105 135 60
y
700
500
600
400
300
200
100
0 x700500 600400300200100
A
B
C
D
(135)
(105)
(75)
(60)
Miles
Mil
es
Center-of-Gravity Example
x = = =n
Vii = 1
xiVii = 1
n
n
Vii = 1
yilii = 1
n
y = = = (200 x 75) + (500 x 105) + (600 x 135) + (300 x 60)
75 + 105 + 135 + 60
(200 x 75) + (100 x 105) + (250 x 135) + (500 x 60)
75 + 105 + 135 + 60
Center-of-Gravity Example
A B C D
xi 200 100 250 500yi 200 500 600 300Vi 75 105 135 60
y
700
500
600
400
300
200
100
0 x700500 600400300200100
A
B
C
D
(135)
(105)
(75)
(60)
Miles
Mil
es
Location Factor Rating
Location Factor Rating Example
Factor WeightSite Scores Weighted Score
1 2 3 1 2 3
Labor Market 30 4 3 5 120 90 150
Utilities 20 5 4 4 100 80 80
Road Access 20 3 5 4 60 100 80
Rail Access 15 4 4 4 60 60 60
Community 15 3 4 5 45 60 75
Total 385 390 445
• Evaluate three different sites