Facility Location (Part 2)

Facility Location (Part 2) - 13-1Facility Location...

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Unformatted text preview: 13-1Facility Location DecisionsChapter 13 (Part II)CR (2004) Prentice Hall, Inc.13-2CR (2004) Prentice Hall, Inc.Method appraisal•A continuous location method•Locates on the basis of transportation costs alone•We will consider single facility location (can be extended to multiple facility location)The COG method involves•Determining the volumes by source and destination point•Determining the transportation costs based on $/unit/mi.•Overlaying a grid to determine the coordinates of source and/or destination points•Finding the weighted center of gravity for the graph Center-of-Gravity (COG) Method13-3CR (2004) Prentice Hall, Inc.COG Method(Cont’d)∑∑∑∑==iiiiiiiiiiiiiiRVYRVY,RVXRVXwhereVi = volume flowing from (to) point iRi = transportation rate to ship Vifrom (to) point iXi,Yi = coordinate points for point i= coordinate points for facility to be locatedY,X13-4CR (2004) Prentice Hall, Inc.COG Method(Cont’d)ExampleSuppose a regional medical warehouse is to be established to serve several Veterans Administration hospitals throughout the country. The supplies originate at S1and S2and are destined for hospitals at H1through H4. The relative locations are shown on the map grid. Other data are:Note rate is aper mile costPointiProd-uctsLocationAnnualvolume,cwt....
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This note was uploaded on 10/16/2011 for the course OM 368 taught by Professor Morrice during the Spring '11 term at University of Texas.

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Facility Location (Part 2) - 13-1Facility Location...

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