FacilityLocationIntroduction

FacilityLocationIntroduction - 8/25/2009 Facility Location...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
8/25/2009 1 Facility Location ISyE 4803 Pinar Keskinocak Graphics Source: “Geography globe design template.” Microsoft Office Online. Microsoft Corporation. January 20, 2009. <http://office.microsoft.com/en-us/templates/CT101427471033.aspx> Acknowledgement: Thanks to Amanda Meija for her help in preparing these slides What is a “Facility”? 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8/25/2009 2 Facilities are used to… • Hold finished products and ship to customers (distribution center (distribution center) • Manufacture products (manufacturing plant) • Sort and ship products (cross-dock) • Display and sell products to customers (retail) 3 • Provide healthcare services – Doctor’s office – Hospital – Vaccination center Why does a facility’s location matter? 4
Background image of page 2
8/25/2009 3 Why does a facility’s location matter? • Wal-Mart retail locations within 50 mi of Atlanta • Wal-Mart distribution 5 centers within 50 mi of Atlanta (Monroe, GA) Factors influencing location decision • Locations of customers Locations of suppliers • Expansion capability Local political conditions • Transportation access • Real estate costs • Material costs • Cost of labor • Climate • Weather events • Insurance costs • Locations of competitors 6 Adapted from Johnson, James C., et al. Contemporary Logistics . 7 th ed. Upper Saddle River, NJ: Prentice Hall, 1999.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8/25/2009 4 Simple Example • Two customers: – Customer A – Customer A • Demands 100 units/year • Located at mile 10 on a highway – Customer B • Demands 100 units/year • Located at mile 40 on the same highway 7 • Labor market and tax structure uniform along the highway 10 40 A B • Customer locations and demand: Why do we need optimization models to locate facilities? 4 – A: (2.0, 2.9), 520 units – B: (3.1, 2.5), 800 units – C: (1.8, 2.2), 540 units – D: (2.4, 1.7), 1,550 units – E: (0.5, 1.6), 790 units – F: (1.7, 0.6), 1,260 units – G: (3.3, 1.4), 2,050 units B A C E D 23 8 • Locate a distribution center to minimize the weighted distance from customers (center-of mass) F G 01 2 34
Background image of page 4
8/25/2009 5 Measuring Distances • “Manhattan distance” (1-norm) – Best for cities with perpendicular streets L1 y y x x + = – N-S distance + E-W distance • “As the crow flies” (2-norm) – Best for long distances and highways Larger of N-S and E-W distances ( -norm) 2 1 2 1 () 2 2 2 1 2 2 1 L2 y y x x + = 9 – Useful for automatic warehouses • Arc Distance on a Sphere – Used in air travel – Complex calculation 2 1 2 1 2 1 2 1 , max y y x x y y x x L = + = Center-of-mass • Center-of-mass location = The weighted average location of a set of populations • Weights can be: – Population size – Demand – Importance – Severity of need Population 1 Pop 2 Population 3 10 Population 5 Pop 4 ( ) = i i i i i i w y x w y x , , w i = weight of each population i x i = x -coordinate of each population i y i = y -coordinate of each population i
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/27/2009 for the course ISYE 4803 taught by Professor Staff during the Spring '08 term at Georgia Institute of Technology.

Page1 / 13

FacilityLocationIntroduction - 8/25/2009 Facility Location...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online