Is a general approach that is useful to evaluate a given alternative and given alternatives

1.

2.

3. 4. 5.

6.

Determine which factor is relevant Assign weight to each factor that indicates relative importance compared with all other factors Decide a common scale of all factors and set a minimum acceptable score if necessary Score each location alternatives Multiply the factor weight by the score for each factor, and sum the result for each location alternative Choose the alternative which has the highest composite score, unless it fails to meet the minimum acceptable score

A photo-process company intends to open new branches store. The following table contains information on two potential location. Which is better alternative
alternative Factor Proximity to existing stores Traffic volume Rental cost Size layout Operating cost weight .10 .05 .40 .10 .20 .15 1.00 Weighted scores

1
100 80 70 86 40 80

2
60 80 90 92 70 90

Alterative 1
.10(100) =10 .05(80) =4 .40(70) =28 .10(86) =8.6 .20(40) =8 .15(80) =12 70.6

Alternative 2
.10(60) =6 .05(80) =4 .40(90) =36 .10(92) =9.2 .20(70) =14 .15(90) =13.5 82.7

Is a method to determine the location of a facility that will minimize the shipping cost or travel time to various destination

If the to be ship to every locations is equal you can obtain the coordinates of the center of gravity by finding the average of x coordinates these average can be easily determine using the following formulas:

Where xi = x coordinate of destination i yi = y coordinate of destination i n = number of destinetion

Where: Qi= quantity to be ship on the destination xi = x coordinate of destination yi = y coordinate of destination

The coordinate of the destination can be obtain from 8.1B:

Destinati on D1 D2 D3 D4 total X 2 3 5 8 18 Y 2 5 4 5 16

Destination

Weekly Quantity

D1
D2 D3 D4 total

2
3 5 8 18

2
5 4 5 16

800
900 200 100 2000

Determine the center of gravity