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Facility Location (Part 2)

Facility Location (Part 2) - Facility Location Decisions...

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13-1 Facility Location Decisions Chapter 13 (Part II) CR (2004) Prentice Hall, Inc.
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13-2 CR (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) Method
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13-3 CR (2004) Prentice Hall, Inc. COG Method (Cont’d) = = i i i i i i i i i i i i i i R V Y R V Y , R V X R V X where Vi = volume flowing from (to) point i Ri = transportation rate to ship Vi from (to) point i Xi,Yi = coordinate points for point i = coordinate points for facility to be located Y , X
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13-4 CR (2004) Prentice Hall, Inc. COG Method (Cont’d) Example Suppose a regional medical warehouse is to be established to serve several Veterans Administration hospitals throughout the country. The supplies originate at S1 and S2 and are destined for hospitals at H1 through H4 . The relative locations are shown on the map grid.
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