MEMORANDUM

To: Chief Executive Officer

William

From: Kitchen and Procurement Director & Team

Ong Wee Hou
Teo Tiong Lek
Poh Kai Lin
Nur Liyana Binte Soeed

Date: 7 October 2019

Subject: Analysis of New Centralized Kitchen-Cum Procurement Office

Layout Analysis
Based on the calculations done in Appendix 1, our team has chosen Layout Plan F (shown below) as the
final layout.

Layout Plan F

Loading and Unloading Beverage Store Procurement Office / Bakery Store

bays for delivery trucks Manager’s Office

Calculating Total Load x Displacement

Total Load Displacement = (30x20 + 30x40 + 14x60 + 0x20 + 7x20)
= (600 + 1200 + 840 + 0 + 140)
= 2780

Plan Layout Displacement Value

A LABC 4020
B LACB 3960
C LCAB 3440
D LCBA 2980
E LBCA 3180
F LBAC 2780
Table 1.0

Plan F has the least displacement value out of all the plans stated in Table 1.0.
Location Analysis

Coord (X,Y) Wt Coord (X,Y)

Outlet Location Weight ($) X-Coordinate Y-Coodinate Wt X Wt Y
North Point $80,000 7 40 $560,000 $3,200,000
Century Square $96,000 20 30 $1,920,000 $2,880,000
Vivocity $113,000 0 3 $0 $339,000
IMM Centre $98,000 -15 12 ($1,470,000) $1,176,000
Lot One $95,000 -10 20 ($950,000) $1,900,000
Parkway
$102,000 12 8 $1,224,000 $816,000
Parade
One KM $82,000 11 10 $902,000 $820,000
Junction 8 $108,000 8 18 $864,000 $1,944,000
Toa Payoh $90,000 6 15 $540,000 $1,350,000
Total Weight: $864,000 Total $3,590,000 $14,425,000

Centre of gravity: X Centre = 3,590,000 / 864,000

= 4.16
Centre of gravity: Y Centre = 14,425,000 / 864,000
= 16.35

Center of Gravity Model

45

40 North Point ($80,000)

35
New Store
30
Location Century Square
25 ($96,000)

20 Lot One ($95,000)

Junction 8 ($108,000)

15 Toa Payoh ($90,000)

IMM Centre ($98,000)
10 One KM ($82,000)
Parkway Parade ($102,000)
5
Vivocity ($113,000)

0
-20 -15 -10 -5 0 5 10 15 20 25

The new store location could potentially be located at Bishan area.

Appendix 1

Plan A
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L A B C
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 A (Manager’s Office) 0 20 40
B (Beverage Store) 0 0 B (Beverage Store) 0 20
C (Bakery Store) 0 C (Bakery Store) 0

Calculating Total Load x Displacement

Total Load Displacement = (14x20 + 30x40 + 40x60 + 7x20 + 0x20)

= (280 + 1200 + 2400 + 140 + 0)
= 4020
Plan B
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L A C B
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 A (Manager’s Office) 0 20 40
B (Beverage Store) 0 0 C (Bakery Store) 0 20
C (Bakery Store) 0 B (Beverage Store) 0

Calculating Total Load x Displacement

Total Load Displacement = (14x20 + 40x40 + 30x60 + 7x40 + 0x20)
= (280 + 1600 + 1800 + 280 + 0)
= 3960
Plan C
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L C A B
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 C (Bakery Store) 0 20 40
B (Beverage Store) 0 0 A (Manager’s Office) 0 20
C (Bakery Store) 0 B (Beverage Store) 0

Calculating Total Load x Displacement

Total Load Displacement = (40x20 + 14x40 + 30x60 + 7x20 + 7x20)
= (800 + 560 + 1800 + 140 + 140)
= 3440

Plan D
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L C B A
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 C (Bakery Store) 0 20 40
B (Beverage Store) 0 0 B (Beverage Store) 0 20
C (Bakery Store) 0 A (Manager’s Office) 0

Calculating Total Load x Displacement

Total Load Displacement = (40x20 + 30x40 + 14x60 + 0x20 + 7x20)
= (800 + 1200 + 840 + 0 + 140)
= 2980
Plan E
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L B C A
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 B (Beverage Store) 0 20 40
B (Beverage Store) 0 0 C (Bakery Store) 0 20
C (Bakery Store) 0 A (Manager’s Office) 0

Calculating Total Load x Displacement

Total Load Displacement = (30x20 + 40x40 + 14x60 + 0x20 + 7x20)
= (600 + 1600 + 840 + 0 + 140)
= 3180

Chosen Plan

Plan F
Weekly Movement Count Physical Displacement Between Areas
Movement Count L A B C Movement Count L B A C
L (Loading/Unloading) 0 14 30 40 L (Loading/Unloading) 0 20 40 60
A (Manager’s Office) 0 7 7 B (Beverage Store) 0 20 40
B (Beverage Store) 0 0 A (Manager’s Office) 0 20
C (Bakery Store) 0 C (Bakery Store) 0

Calculating Total Load x Displacement

Total Load Displacement = (30x20 + 30x40 + 14x60 + 0x20 + 7x20)
= (600 + 1200 + 840 + 0 + 140)
= 2780