Chapter 2: Location

Olivia Callejo
Anna Visens

Industrial hospital laundry

For selecting the location of our laundry we have applied the different models studied in class.
To do the models we have taken some assumptions that would be explained in each step and at the
end we will do a small conclusion of the results of each model.
Center of gravity model:
Coordinates
Customers
Hospital de Terrassa
Centre Vallparads
Hospital Universitari Mtua de Terrassa
Hospital de Sant LLtzer
Hospital General Penitenciari
Clnica Mtua de Terrassa
Hospital de Sabadell
Centre Gerontolgic Amma
Centre de Prevenci i Rehabilitaci Asepeyo
Hospital General de Catalunya
Clnica del Valls
Laundry

Location
Terrasa
Terrasa
Terrasa
Terrasa
Torrebonica
Terrasa
Sabadell
Sant Cugat del Valles
Sant Cugat del Valles
Sant Cugat del Valles
Sabadell
Sabadell

X
Y
Demand per day
41,556261
2,053592
351
41,565059
2,017322
81
41,56377
2,017068
534
41,563009
2,017307
83
41,554584
2,055009
32
41,563758
2,017057
19
41,557368
2,111102
861
41,484527
2,084476
30
41,489824
2,078111
138
41,475154
2,044648
286
41,532185
2,117326
109
41,5440515 2,066315103

Center of gravity
2,14
2,12
2,1
2,08
2,06
2,04
2,02
2
41,46

41,48

41,5

41,52

41,54

41,56

41,58

For selecting the hospitals we have search online and found the information in the Ministerio
de Sanidad, servicios sociales e igualdad where they have the information of the number of beds
of each hospitals. So in the demand column we have place this number of beds, which will also be
the number of linens we will have to clean each day. Using the formula given in class notes we have
calculated the center of gravity of our laundry and found the following coordinates: (41,5440515 ;
2,066315103). We place all the coordinates in the graph above, where the red point is our Laundry.
Searching this coordinates in the Coordenadas Geograficas en Google Maps web page our laundry
will be in Sabadell, as you can see in the figure below:

The next thing that we did was search for suppliers for our machines and for the detergent that
we will use. Doing some calculations we have decided that we will need 30 washing machines of
110kg each, for this we have assume that each linens weight 5kg. So each day we will have to clean
12.620kg of linens, so each washing machine has to do 4 cleaning cycles. For the amount of
detergent that we will use we have assume that for washing 5kg of linens we need 0.03litres of
detergent so in total we will need 79,2kg of detergent each day. We have searched the suppliers in
Pginas Amarillas and then we have looked for the coordinates in Google Maps.
Suppliers
Carbonell Cia. Anma.
Hogar Tintorero S.L.
Sertec S.L. (SAT GIRBAU)
Icomatex S.A.
Fervinter S.L.
Teclim Qumica
Dyt Qumica
Dermo S.A.
Desilsa
Pahes Limper
Wet Dry Solutions
Tensoactius i Colorants S.A.
Detergentes Ibericos S.L.
Detergenes IberJas S.L.
BCN Trasvases S.L.
KAO Corporation S.A.

Location
Rubi
Montcada i Reixac
Terrasa
Terrasa
Rubi
Rubi
Terrasa
Polinya
Santa Perpetua de Mogoda
Terrasa
Terrasa
Terrasa
Sabadell
Sabadell
Santa Perpetua de Mogoda
Barber del Valles

Y
41,479652
41,496446
41,579195
41,549317
41,478344
41,503634
41,540819
41,541737
41,543249
41,56444
41,582176
41,551457
41,534885
41,531802
41,54718
41,521278

2,026809
2,186764
2,004799
2,036336
2,024089
2,040503
2,036753
2,156197
2,17869
2,022309
2,02178
2,012263
2,09887
2,106414
2,176167
2,151443

Supplies
Machinery
Machinery
Machinery
Machinery
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent
Detergent

Coordinates
X
Y
Demand
41,478344 2,024089
79,2
41,503634 2,040503
79,2
41,540819 2,036753
79,2
41,541737 2,156197
79,2

Detergetn Suppliers
Fervinter S.L.
Teclim Qumica
Dyt Qumica
Dermo S.A.

Location
Rubi
Rubi
Terrasa
Polinya

Desilsa
Pahes Limper
Wet Dry Solutions
Tensoactius i Colorants S.A.
Detergentes Ibericos S.L.
Detergenes IberJas S.L.
BCN Trasvases S.L.
KAO Corporation S.A.
Laundry

Santa Perpetua de Mogoda

Terrasa
Terrasa
Terrasa
Sabadell
Sabadell
Santa Perpetua de Mogoda
Barber del Valles

41,543249
2,17869
41,56444 2,022309
41,582176
2,02178
41,551457 2,012263
41,534885
2,09887
41,531802 2,106414
41,54718 2,176167
41,521278 2,151443
41,5367501 2,0854565

79,2
79,2
79,2
79,2
79,2
79,2
79,2
79,2

Center of gravity
2,2
2,15
2,1
2,05
2
41,46

41,48

41,5

41,52

41,54

41,56

41,58

41,6

To compute the detergent suppliers center of gravity we have use the coordinates of X,
coordinates of Y and the demand of detergent per day. The solution is (41,53675008 ; 2,0854565)
which is Sant Quirze del Valls, as you can see in the image below.

We have only taken into account the detergent suppliers and not the machinery suppliers
because we think that machinery suppliers are not relevant on the search of the best place to locate
since we buy the machinery at the moment of the establishment and for a long time, we dont buy
again machineries.
After calculating the center of gravity of customers and the center of gravity of suppliers, we
have mixed both to obtain the final center of gravity and the solution is (41,54040079 ; 2,07588502)
which is Sant Quirze del Valls.

Customers

Coordinates
X
Y
41,5440515 2,0663151

Detergent
Center of gravity

41,5367501 2,0854565
41,5404008 2,0758858

Factor-Rating model:
Factor
Labor availability
Proximity of suppliers
Proximity to customers
Availability and costs of utilities
Site size and costs
Government characteristics
Economic issues
Environmental regulations
Land and construction costs
TOTAL

Weight
10
15
20
10
15
5
5
5
15
100

In order to develop the factor-rating method we have used labor availability looking to the
unemployment rates of this localities, the city with more unemployment is Terrassa, followed by
Sabadell. The proximity of suppliers is measured with the number of suppliers in each location,
Terrassa is the city with more suppliers.
The proximity of customers is rated with which city have the majority of hospitals near,
according to the method Sant Quirze has most hospitals near. To compute the availability and costs
of utilities we have searched the prices of water in the website Laigua s vida and Cerdanyola has
the highest prices. In order to know the prices of sites to measure the costs we have searched on
Spain Houses and Sant Cugat is the most expensive. For the purpose of rating government
characteristics we have looked for the political parties that are in the local government, we have
rated worst the right-wing politics and best the center/left-wing politics.
To measure the economic issues we have taken into account the PIB per capita of each city,
Barber have the highest PIB per capita. For the environmental regulations we have searched for
the waste of these cities, Terrassa is the area with more pollution. To rate the land costs we have
considered the prices of land, in Habitaclia the land is more expensive in Sant Quirze and Barber.
Locations
FACTOR
Sabadell

Terrassa

Sant
Quirze del
Valls

Barber
del Valls

Sant
Cugat del
Cerdanyola Valls

Rub

Labor availability
Proximity of suppliers
Proximity to customers

8
12
16

9
13
16

5
9
17

7
10
15

6
9
11

4
7
12

8
8
10

Availability and costs of

utilities
Site size and costs

4
13

4
12

8
6

7
9

2
4

3
2

4
10

Government
characteristics
Economic issues

4
2

3
2

4
4

3
5

4
2

2
4

3
4

Environmental
regulations

Land and construction

costs

10

12

69

70

59

62

52

49

57

TOTAL

Keeping in mind all this critical factors we have found that Terrassa is the best city to locate our
company.
Costs model:
For applying the cost model we have taken the top 3 best locations of the Factor Rating Model:
Terrasa, Sabadell and Barbera del Valls. We have search online for possible locations in each city
using the web page Habitalicia we have found three places to rent, one in each city.

Location in Terrasa1:

We have selected this location because it is in Can parellada industrial area, which is close to
our center of gravity. Also because it has a special system for to extract particles which we think will
be important since we are washing hospitals linens we dont want them to get any germ or
something like that once is clean. This location has a special entrance for trucks which is important
for the delivery of the linens. It is also close to public transport which makes it easy for employees
to come to work. It will require some reforms, approximately 4.000, to prepare it to start working.

Location in Sabadell2:

We have selected this location because it is in Zona Gracia industrial area, which is the closest
location to our center of gravity. It has an entrance for trucks which is important for the delivery of
the linens. It is also close to public transport which makes it easy for employees to come to work.
This location requires important reforms before it can start working, approximately 10.000.

http://www.habitaclia.com/alquiler-nave_industrial-sistema_extraccion_de_particulas_can_parelladaterrassa-i1013001709030.htm
2
http://www.habitaclia.com/alquiler-nave_industrial-nave_recien_rehabilitada_gracia-sabadelli772001865850.htm

Location in Barber del Valls3:

This location also have an entrance for trucks which is important for the delivery of the linens.
It is also close to public transport which makes it easy for employees to come to work. It is also
almost new so it only required few reforms to start working, approximately 2.000.

Next we measure the distances from each location to each hospital, then we applied the
formula given in class notes. We have assume that per 1km our truck spends 0,24 of oil (we get
this price using Via Michelin web page); we have also assume that 1 kilometer straight line
corresponds to 1.6 kilometer of real road. As you can see in the table above, regarding the customer
transportation cost the cheapest location is Sabadell.

http://www.habitaclia.com/alquiler-nave_industrial-nave_en_zona_industrial-barbera_del_vallesi3999001945476.htm

Distance local
Demand Terrasa (km) Cost

CUSTOMERS
Hospital de Terrassa
Centre Vallparads
Hospital Universitari Mtua de
Terrassa
Hospital de Sant LLtzer
Hospital General Penitenciari
Clnica Mtua de Terrassa
Hospital de Sabadell
Centre Gerontolgic Amma
Centre de Prevenci i
Rehabilitaci Asepeyo
Hospital General de Catalunya
Clnica del Valls
Total transport cost customers

Transport Cost of Distance local

each customer Sabadell (km) Cost

351
81

2,24 0,54
2,82 0,68

534
83
32
19
861
30

2,71
2,64
2
2,7
6,73
7,75

0,65
0,63
0,48
0,65
1,62
1,86

555,70
84,14
24,58
19,70
2.225,10
89,28

138
286
109

6,98 1,68
7,61 1,83
7,09 1,70

369,88
835,76
296,76
4890,53

301,92
87,71

4,18 1,00
7,37 1,77
7,3
7,13
3,89
7,19
2,1
6,43

Transport Cost of Distance local

each customer Barbera (km) Cost
563,40
229,24

1,75
1,71
0,93
1,73
0,50
1,54

1.496,91
227,25
47,80
52,46
694,31
74,07

5,92 1,42
8,63 2,07
1,81 0,43

313,71
947,78
75,76
4722,69

Transport Cost of
each customer

7,66 1,84
10,64 2,55

1.032,45
330,95

10,61
10,54
7,42
10,56
4,86
4,73

2,55
2,53
1,78
2,53
1,17
1,14

2.175,64
335,93
91,18
77,05
1.606,83
54,49

4,79 1,15
7,99 1,92
2,22 0,53

253,83
877,49
92,92
6928,76

Next we have calculated the cost of the washing machines, for this we have assume that all
machine suppliers sell at the same price, 10.000 (we have search for online prices of industrial
washing machines of 110kg). We have selected the closest supplier of each location to have the
minimum transport cost (we have assume the same oil price and the same factor as before). As you
can see in the table below the cheapest one is Terrasa:

Demand
Distance local Cost of
Distance local Cost of
Distance local Cost of
Machinery Suppliers (# machines) Terrasa (km) supplies
Total Cost
Sabadell (km) supplies
Total Cost Barbera (km) supplies
Total Cost
Carbonell Cia. Anma.
30
7,06
9,09
9,98
Hogar Tintorero S.L.
30
13,68
8,89
5,42 300.000,00 300.002,08
Sertec S.L. (SAT
GIRBAU)
30
4,7
8,85
12,52
Icomatex S.A.
30
0,74 300.000,00 300.000,28
5,36 300.000,00 300.002,06
8,4
Next we have calculated the cost of the detergent we will use each day, for this we have assume
that all detergent suppliers sell at the same price, 1,5 per liter of detergent (we have search for
online prices of detergent). We have selected the closest supplier of each location to have the
minimum transport cost (we have assume the same oil price and the same factor as before). In this
case the cheapest location is Terrasa.

Detergent suppliers

Demand (L of Distance local

detergent)
Terrasa (km)

Fervinter S.L.
Teclim Qumica
Dyt Qumica

79,2
79,2
79,2

Dermo S.A.
Desilsa
Pahes Limper
Wet Dry Solutions
Tensoactius i Colorants S.A.
Detergentes Ibericos S.L.
Detergenes IberJas S.L.
BCN Trasvases S.L.
KAO Corporation S.A.

79,2
79,2
79,2
79,2
79,2
79,2
79,2
79,2
79,2

Cost of
Distance local Cost of
Distance local
supplies Total Cost Sabadell (km) supplies Total Cost Barbera (km)

7,19
4,43
0,30 118,80

9,37
6,3
8

118,92

10,12
12
2,55
4,5
2,05
5,46
6,14
11,75
10,12

Cost of
supplies Total Cost

9,3
7,15
5,17

4,8
6,66
6,9
7,85
7,26
0,62 118,80
2,82
6,53
4,92

119,04

4,05
5,5
10,31
11,54
10,33
3,24
2,52
5,56
2,30 118,80

At the end we sum up all the costs and we get that the cheapest location is the one in Terrasa.
So we will place our laundry there.

Costs

Cost in Terrasa

Transport cost customers (per year)

Cost of machinery
Cost of detergent (per year)
Cost of utilities (per year)
Rent of the local (per year)
Reforms of the local
Vehicle
Total costper year

1.760.591,46
300.000,28
42.809,47
360.000,00
14.400,00
4.000,00
20.000,00
2.501.801,22

Cost in Sabadell Cost in Barbera

1.700.166,76
300.002,06
42.853,71
420.000,00
14.400,00
10.000,00
20.000,00
2.507.422,53

2.494.352,79
300.002,08
43.085,95
396.000,00
33.000,00
2.000,00
20.000,00
3.288.440,83

Graph-based model:

CITY
Terrassa
Sabadell
Sant Cugat
Torrebonica
Demand

Terrassa
(km)
0
8,55
12,02
3,56
1068

Sabadell
(km)
8,55
0
8,47
5,09
970

Sant Cugat Torrebonica

(km)
(km)
12,02
8,47
0
10,62
454

3,56
5,09
10,62
0
32

To design the Graph-based we have written the places where we have hospitals and we have
computed the distances between these cities, then we have multiplied the distances by the demand
and we have sum up the rows. After all, the lowest number is the solution, therefore, according to
the Graph-based model, Sabadell is the best place to locate our company.

119,68

CITY
Terrassa
Sabadell
Sant Cugat
Torrebonica

Terrassa
(km)
0
9131,4
12837,36
3802,08

Sabadell
(km)
8293,5
0
8215,9
4937,3

Sant Cugat Torrebonica

(km)
(km)
TOTAL
5457,08
3845,38
0
4821,48

113,92 13864,5
162,88 13139,66
339,84 21393,1
0 13560,86

We only have used the approach of the simple median and not the coverage problem because
we think that it does not make sense to stablish a maximum distance since we only have searched
locations inside the Valls Occidental and in our company the time is not a relevant factor.