Topic 06

Location Planning: Models &

Methods

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 1

 ISE 422 - FACILITY LAYOUT & LOCATION

PLOs CLOs Chapter Assessment / Marks

Mid Q Assign HW CW Final Total
1.1
Understand the basics of mathematics, physical Understand integrated nature of the
Chapter 1 5 5 5 5 20
and engineering science discipline

Identify facility planning concepts and Chapter 3 5 5 10

2.1 methods
Identify the production and design problems in
manufacturing engineering fields
Identify warehouse operations techniques Chapter 8 5 5 5 15

2.2
Chapter 4 5 5 10
Formulate the problem objectives and constraints Describe resolution techniques using
relative to production and mechanical problems. different distance measures

Discuss strategic approaches to product, Chapter 3 5 5 10

process and scheduling designs
2.4
Analyse the solution alternatives and choose the
Analyze analytical approaches to plant Chapter 4, 5, 6 5 5 5 15
layout problem
optimum one.
Discuss computerized models and solutions Chapter 6 5 5 10
to the facility layout problem

2.11 Chapter 4, 5, 6 5 5 10
Design the production systems, projects, product,
component, process or operation to meet desired Ability to design single and multi-facility
needs within realistic constraints such as location models
economical, environmental, social, political,
ethical, health and safety considerations.

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 2

Quality & Accreditation Terminologies
ü Program Leaning Outcomes : PLOs
ü Course Leaning Outcomes : CLOs
ü Course Specification : CS
ü Course Report : CR
ü Teaching Strategy : TS
ü Assessment Methods : AM
ü Rubric Sheets : RS
ü Aptitude Exam : APE
ü Bench Mark : BM

Correlation between all of them?!

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 3

Introduction
• Factors that influence the facility location decision:
• Transportation (availability, cost)
• Labor (availability, cost, skills)
• Materials (availability, cost, quality)
• Equipment (availability, cost)
• Land (availability, suitability, cost)
• Market (size, potential needs)
• Energy (availability, cost)
• Water (availability, quality, cost)
• Waste (disposal, treatment)
• Financial institutions (availability, strength)
• Government (stability, taxes, import and export restrictions)
• Existing plants (proximity)
• Competitors (size, strength and attitude in that region)
• Geographical and weather conditions

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 4

Classification – Number of Facilities
• Location deals with the placement of different facilities on a macro level
• Classification
• Single facility location problem:
• Given m existing facilities, find the best location of one new facility. The best location will be
determined based on some distance criteria
• Multiple facility location problem
• Given m existing facilities, find the best location of n new facilities. The best locations will be
determined based on some distance criteria

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 5

Classification – Solution Space
• Continuous facility location problem:
• Typically unconstrained
• For the new facility we can choose ANY site in the space
• For the existing related facilities (suppliers, customers, etc.) we know the coordinates (x, y) and
the flows (cost) between them and the new facility
• Sole consideration is transportation cost
• Discrete facility location problem:
• New facility should be placed only at specific locations
• Typically involve constraints

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 6

Classification – Criteria
• Minisum criteria:
• Locating one or more facilities such that the weighted sum of distances among pairs of facilities
is minimized
• Minimax criteria:
• Locating one or more facilities such that the weighted maximum distances traveled from new
facilities to the existing facilities or to the new facilities is minimized
• Maximin criteria:
• Locating one or more facilities such that the weighted minimum distances traveled from new
facilities to the existing facilities or to the new facilities is maximized

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 7

Classification – Distance Measures
• Rectilinear distance measure or Manhattan Distance:
Distances are measured along paths that are perpendicular to
(a, b)
one another. Let (x, y) and (a, b) be two points, then the
distance measure is defined as:
𝑑 = 𝑥−𝑎 + 𝑦−𝑏
(x, y)

• Euclidean distance measure: Distances are measured along (a, b)

straight lines. Let (x, y) and (a, b) be two points, then the
distance is defined as:

𝑑= (𝑥 − 𝑎)!+(𝑦 − 𝑏)!
(x, y)

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 8

Classification – Distance Measures
• Chebyshev distance measure: Distance between two points in two
dimensional space is the greater of the horizontal and vertical distance
travelled. Let (x, y) and (a, b) be two points, then the distance is defined
as:
𝑑 = 𝑚𝑎𝑥 𝑥 − 𝑎 , 𝑦 − 𝑏
Used to model material handling equipment, such as an automated
(a, b)
storage/retrieval (AS/R) machine, that moves vertically while moving
horizontally along an aisle to a reach a storage location

(x, y)
• Actual distance measure: Distance between two points is measured
along the actual path
DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 9
Rectilinear – Distance Facility Location Problems
• Rectilinear – distance facility location problem represents a situation commonly encountered in
manufacturing and distribution settings
• Also, it occurs within many cities, due to the layout of streets
• Both single-facility and multi-facility location problems, in which the solution space is planar (or two-
dimensional)
• Minisum and minimax criteria
• Instances in which the facilities are a mixture of points and areas

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 10

Single-Facility, Rectilinear Minisum Location Problem
• To facilitate the presentation, we introduce the following notation”
X = (x, y) Location of new facility
P = (ai, bi) Location of existing facilities
wi "weight" associated with travel between the new facility and existing facility i
D(X, Pi) distance between the new facility and existing facility i
• In a rectilinear model, the distances are measured by the sum of the absolute difference in their coordinates
D(X, Pi) = |x – ai| + |y – bi|
• Objective function
$

𝑚𝑖𝑛 𝑓 𝑋 = ' 𝑤! 𝐷(𝑋, 𝑃! )

!"#
$ $

min 𝑓 𝑥 = ' 𝑤! |x – ai| + ' 𝑤! |y – bi|

!"# !
DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 11
Single-Facility, Rectilinear Minisum Location Problem
• Apply these rules to find the optimum value of x:
• X-coordinate of the new facility will be the same as the x-coordinate of some existing facility
• Median condition: Selected X coordinate cannot be more than half the total weight which is to
the right of x, or which is to the left of x.
• Same rules apply in selection of the optimum value of y

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 12

Single-Facility, Rectilinear Minisum Location Problem
• Procedure
1. Find x-coordinate:
• Order the facilities based on the ascending order of their x-coordinates
• Calculate partial sum of weights
• Find the facility for which the partial sum first equals or exceeds one-half the total weight
• The x-coordinate of the new facility will be the same as the x-coordinate of this facility
2. Find y-coordinate
• Repeat the same for y-coordinate

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 13

Single-Facility, Rectilinear Minisum Location Problem
• Alternate sites
• If we cannot place the new facility on the selected location, then alternate sites could be
evaluated by computing the f(x, y) values for all the possible locations and chose the location
that gives the minimum f(x, y) value:
% %

min 𝑓 𝑥 = 1 𝑤" 𝑥 − 𝑎" + 1 𝑤" 𝑦 − 𝑏 𝑖

"#$ "#$

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 14

Example 1
• A new location for a manufacturing facility is being considered. The facility has frequent relationships
with its five major suppliers and since the supplied material is bulky and transportation costs are
high the closeness to the five suppliers has been determined as the major factor for the facility
location. The current coordinates of the suppliers are S1 = (1, 1), S2 = (5, 2), S3 = (2, 8), S4 = (4, 4)
and S5 = (8, 6). The cost per unit distance travelled is the same for each supplier, but the number of
trips per day between the facility and each of its suppliers are 5, 6, 2, 4 and 8.
• Find a new location for the facility which minimizes the transportation costs
• Calculate total weighted distance for the new location.
• If the facility cannot be placed in the optimal location, find the second best alternative site out of (5,
6), (4, 2) and (8, 4).

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 15

Example 1
Supplier Coordinates Relationship with the facility
Relationship with the facility
i ai bi (trips per day)
(trips per day), wi Supplier Coordinates
1 1 1 5 i ai wi
2 5 2 6
3 2 8 2 1 1 5 5
4 4 4 4 3 2 2 7
5 8 6 8 4 4 4 11 < 25/2
2 5 6 17 > 25/2
Find x-coordinate:
5 8 8 25
• Order the suppliers based on the ascending order of
their x-coordinates Half the total weight: (5+2+4+6+8)/2 = 25/2 =12.5
• Calculate partial sum of weights Rule 1: Here the partial sum first equals or
• Find the supplier for which the partial sum first equals or exceeds ½ the total weight
exceeds one-half the total weight X=5
• The x-coordinate of the new facility will be the same as Rule 2: Selected X should be the same as the
the one of this supplier X-coordinate of some of the suppliers (here S2)

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 16

Example 1
Supplier Coordinates Relationship with the facility
Relationship with the facility
i ai bi (trips per day)
(trips per day), wi Supplier Coordinates
1 1 1 5 i ai wi
2 5 2 6
3 2 8 2 1 1 5 5
4 4 4 4 2 2 6 11 < 25/2
5 8 6 8 4 4 4 15 > 25/2
5 6 8 23
Find x-coordinate:
3 8 2 25
• Order the suppliers based on the ascending order of
their y-coordinates Half the total weight: (5+2+4+6+8)/2 = 25/2 =12.5
• Calculate partial sum of weights Rule 1: Here the partial sum first equals or
• Find the supplier for which the partial sum first equals or exceeds ½ the total weight
exceeds one-half the total weight Y=4
• The y-coordinate of the new facility will be the same as Rule 2: Selected Y should be the same as the
the one of this supplier Y-coordinate of some of the suppliers (here S4)

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 17

Example 1
• Coordinates of new facility: (X, Y) = (5, 4)
9
Supplier Coordinates 2, 8
i ai bi wi 8

1 1 1 5 7
8, 6
2 5 2 6 6
3 2 8 2
5
4 4 4 4 4, 4
4 5, 4
5 8 6 8
3

2 5, 2
Rectilinear paths between the new facility and 1, 1
1
each existing facility are indicated by dashed
lines 0
0 1 2 3 4 5 6 7 8 9

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 18

 Supplier Coordinates
i ai bi wi
Example 1 1
2
1
5
1
2
5
6
3 2 8 2
4 4 4 4
• Coordinates of new facility: (X, Y) = (5, 4) 5 8 6 8

• The total weighted distance between the new facility and its suppliers can be found as:
% %

min 𝑓 𝑥 = 1 𝑤" |x – ai| + 1 𝑤" |y – bi|

"#$ "#$
• f(5, 4) = 5(|5-1|+|4-1|) + 6(|5-5|+|4-2|) + 2(|5-2|+|4-8|) + 4(|5-4|+|4-4|) + 8(|5-8|+|4-6|) = 105
• If the facility cannot be placed in the optimal location, find the second best alternative site out of (5,
6), (4, 2) and (8, 4)
• O5 → f(8, 4) = 50 + 30 + 20 + 16 + 16 = 132
• O5 → f(5, 6) = 45 + 24 + 10 + 12 + 24 = 115
• O5 → f(4, 2) = 20 + 6 + 16 + 8 + 64 = 114

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 19

Using Excel® to Solve Single-Facility, Rectilinear Location Problem

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 20

Using Excel® to Solve Single-Facility, Rectilinear Location Problem

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 21

Using Excel® to Solve Single-Facility, Rectilinear Location Problem

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 22

Single-Facility, Rectilinear Minimax Location Problem
• Frequently, the total distance traveled is not of the greatest concern when locating one or more new
facilities
• We may be more interested in minimizing the maximum distance traveled
• When we want to minimize the maximum distance between the new facility and any existing facility,
the objective function will be:
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑓 𝑋 = max ( 𝑥 − 𝑎" + 𝑦 − 𝑏" )
$&"&%

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 23

Single-Facility, Rectilinear Minimax Location Problem
• Procedure
• To obtain a minimax solution, let
• c1 = min (ai + bi)
• c2 = max (ai + bi)
• c3 = min (–ai + bi)
• c4 = max (–ai + bi)
• c5 = max (c2 – c1, c4 – c3)
• Optimum solution for the new facility location is on the line segment connecting the points X1*(x1*, y1*) and
Y2*(x2*, y2*)
• X1*(x1*, y1*) = 0.5(c1 – c3, c1 + c3 + c5)
• Y2*(x2*, y2*) = 0.5(c2 – c4, c2 + c4 – c5)
• Max distance equals c5 / 2

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 24

Example 2
A company which has already eight facilities intends to build another one and is currently looking for the
most convenient location. It was determined that the most appropriate place is the one which is closest
to the existing facilities. The locations of the current facilities are given below. Find the best minimax
locations for an additional facility. What will be the maximum distance to any other facility?
i ai bi
1 0 0
2 4 6
3 8 2
4 10 4
5 4 8
6 2 4
7 6 4
8 8 8

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 25

Example 2
i a b ai + bi –ai + bi • c1 = min (ai + bi) Þ c1 = 0
1 0 0 0 0
• c2 = max (ai + bi) Þ c2 = 16
2 4 6 10 2
3 8 2 10 -6
• c3 = min (–ai + bi) Þ c3 = -6
4 10 4 14 -6 • c4 = max (–ai + bi) Þ c4 = 4
5 4 8 12 4 • c5 = max (c2 – c1, c4 – c3) Þ c5 = 16
6 2 4 6 2
7 6 4 10 -2
8 8 8 16 0
Optimal location for the new facility is on the line connecting these two points:
X1*(x1*, y1*) = 0.5(c1 – c3, c1 + c3 + c5) = 0.5 (6, 10) = (3, 5)
Y2*(x2*, y2*) = 0.5(c2 – c4, c2 + c4 – c5) = 0.5 (12, 4) = (6, 2)
DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 26
Example 2
9
• Max distance equals c5 / 2 = 16/2 = 8
8 P5 (4, 8) P8 (8, 8)
• Point (3, 5) is 8 distance units away
7
from P1, P3, P4 and P8
6 P2 (4, 6)
• Point (6, 2) is 8 distance units away
5 3, 5
from P1, P5 and P8 P7 (6, 4)
P6 (2, 4)
4 P3 (10, 4)
• Remaining points on the line segment
3
are 8 distance units away from P1 and
P8 2 6, 2 P3 (8, 2)

P1 (0, 0)
0
0 2 4 6 8 10 12

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 27

Location – Allocation Model
• Determination of the number of new facilities, their location and the customer groups which will be
served by each one of them
• Involves determination of:
• optimum number of new facilities
• where new facilities are to be located
• which customers (of existing facilities) should be served by each new facility
• The objective is to:
• Minimize the total material movement cost
• Minimize the total fixed cost

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 28

Location – Allocation Model
• Objective function
& $

min y = ' ' 𝑧%! 𝑤%! 𝑑 𝑋% , 𝑃' + 𝑔(𝑛)

%"# %"#
s.t.
&
Ensures that each existing
' 𝑧%! = 1 𝑓𝑜𝑟 𝑖 = 1, 2, … … … , 𝑚 facility interacts with only one
%"# new facility
• Where
y is the total cost per unit of time
𝑛 is the number of new facilities (𝑛 = 1, 2, ………, 𝑚)
𝑤%! is the cost per unit of time per unit distance if new facility j interacts with existing facility
𝑧%! = 1 if the new facility j interacts with the existing facility i, 0 otherwise
𝑔(𝑛) is the cost per unit of time of providing n new facilities
𝑑 𝑋% , 𝑃' is the rectilinear distance between existing and new facilities

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 29

Example 3
• 4 customers:
• P1(0, 0), P2(3, 0), P3(6, 0), P4(12, 0)
• w1=w2=w3= 1 and w4= 2
• The cost of setting n new facilities: g(n)=5n
• How many facilities should be built? P1 P2 P3 P4
• Which customers should be served by which facilities?
• Where these facilities should be located?
• What is the minimum total cost?
• Solution: There are four different scenarios
1. n = 1
2. n = 2
3. n = 3
4. n = 4

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 30

Example 3
• When n = 1, then simply solve by single facility location model
• Minisum Location Problem – x coordinate

Customer ai wi å wi Half the total weight 5/2 = 2.5

P1 0 1 1
Facility location: x = 6, y = 0
P2 3 1 2
P1 P2 P3 P4
P3 6 1 3
P4 12 2 5
$ %

TC = - - 𝑧!& 𝑤!& 𝑑 𝑋! , 𝑃' + 𝑔(𝑛)

!"# !"#

TC = 1(0 – 0) + 1(6 – 3) + 1(6 – 6) + 2(12 – 6) + 5 (1) = 26

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 31
Example 3
• When n = 3, then
Case New Facility 1 New Facility 2
a P1 P2, P3, P4
b P1, P2 P3, P4 New facility : (0, 0)
P1
c P1, P2, P3 P4
.… .… .…

• Solve each case by Minisum technique

$ %

TC = $ $ 𝑧!& 𝑤!& 𝑑 𝑋! , 𝑃' + 𝑔(𝑛)

!"# !"#
New facility : (6, 0) or
(12, 0)
• TC(2a) for (0,0) and (6,0) = 1*(0-0) + 1*(6-3) + 1*(6-6) + 2*(12-6) + 5*2 = 25 P2 P3 P4

• TC(2a) for (0,0) and (12,0) = 1*(0-0) + 1*(12-3) + 1*(12-6) + 2*(12-12) + 5*2 = 25

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 32

Example 3
• When n = 3, then:
Case New Facility 1 New Facility 2 New Facility 3 • Find locations and total costs for all
a P1 P2 P3, P4 of these alternatives
b P1, P2, P3 P4
c P1, P2 P3 P4 • Select the case with the lowest cost
.… .… .… .…

• When n = 4, then:
Case New Facility 1 New Facility 2 New Facility 3 New Facility 4
a P1 P2 P3 P4
b P2 P1 P3 P4
c P1 P2 P4 P3
.… .… .… .… .…

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 33

Example 4
• Coffee shops are planned to be placed in an office building. The office tenants are located at P1(20,
70), P2(30, 40), P3(90, 30) and P4(50, 100). 50 persons per day are expected to visit the first office,
30 the second office, 70 the third office and 60 the last office. 70% of visitors are expected to come
to the coffee shop. Each unit distance which a customer has to travel costs the owner of the coffee
shops the loss of $0.25 in revenue. The daily operating cost of n shops is $5000(n)
• Determine the number of coffee shops and their locations
120
P4
No. of People / Coffee Shop Visitors 100
(50, 100)
Day (70%) 80 P1
P1 50 35 60 (20, 70)
P2
40
P2 30 21 (30, 40) P3
20 (90, 30)
P3 70 49
0
P4 60 42 0 20 40 60 80 100

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 34

Example 4
• When n = 1
• Using Minisum algorithm: Find x & y coordinates for new location
Office ai wi å wi Half weight = 74.5 Office Bi wi å wi Half weight = 74.5
X coordinate – Y coordinate –
P1 20 35 35 partial sum first P3 30 49 49 partial sum first
P2 30 21 56 equals or exceeds P2 40 21 70 equals or exceeds
½ the total weight ½ the total weight
P4 50 42 98 P1 70 35 105
P3 90 49 147 P4 100 42 147
x* = 50 y* = 70
$ %

TC = * * 𝑧!& 𝑤!& 𝑑 𝑋! , 𝑃' + 𝑔(𝑛)

!"# !"#

TCost = 0.25*[35*(|20–50|+|70–70|) + 21*(|30–50|+|40–70|) + 49*(|90–50|+|30–70|) + 42*(|50–50|+|100–70|)] + 5000(1)

= 0.25*[35*30 + 21*50 + 49*80 + 42*30] + 5000 = 6,820

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 35

Example 4
• When n ³ 2
TC(n ³ 2) = 5,000*(n) + travel cost ³ 10,000

• When there is more than one coffee shop, the fixed cost per coffee shop and the traveling cost will
be larger than $10,000 which is larger than $6,820 which is the total cost when single coffee shop is
placed. Therefore, there is no need to consider more than 1 coffee shop

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 36

Plant Location Problem
• What we know:
• possible locations for new facilities Cust 1 Cust 2 Cust 5 Cust 8
• Involves determination of:
• optimum number of new facilities
• which customers (of existing Facility 1 Facility 2 Facility 3
facilities) should be served by
each new facility
• The objective is to:
Cust 4 Cust 3 Cust 6 Cust 7
• Minimize the total cost of
supplying all demand to all the
customers

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 37

Plant Location Problem
% $ $

min 𝑧 = - - 𝑐&! 𝑦&! + - 𝑓& 𝑥! where

&"# !"# !"# • m is the number of customers
subject to: • n is the number of plant sites
%
• yij is the proportion of customer i demand supplied by a plant site j
- 𝑦&! ≤ 𝑚𝑥! • xj is 1 if plant is located at j, 0 otherwise
&"# • cij is the cost of supplying all demand of customer i from plant
$ located at site j
- 𝑦&! = 1 • fj is the fixed cost of locating the plant at site j
!"#

𝑦&! ≥ 0

𝑥&! = 0, 1

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 38

Plant Location Problem – Simplified Model

Cust 2 Cust 5 Cust 8

Cust 1

Facility 2
Facility 1 Cust 3 Facility 3

Cust 4
Cust 6 Cust 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 39

Example 5
• There are 5 existing customers (1, 2, 3, 4 and 5)
• 5 sites are being considered for new warehouse location (A, B, C, D and E)
• Each customer can be served by one warehouse only
• Which location should be selected if we want to build only one warehouse?
• If it was already decided that two warehouses are to be built – on site B and on site C, how many additional warehouses
should be built and on which of the considered sites?
Customer Warehouse Sites
Location A B C D E
1 100 500 1,800 1,300 1,700
2 1,500 200 2,600 1,400 1,800
3 2,500 1,200 1,700 300 1,900
4 2,800 1,800 700 800 800
5 10,000 12,000 800 8,000 900
Fixed costs 3,000 2,000 2,000 3,000 4,000

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 40

Example 5
Warehouse Locations
Customer Locations
A B C D E
1 100 500 1800 1300 1700
2 1500 200 2600 1400 1800
Cost of supplying
3 2500 1200 1700 300 1900
the demand
4 2800 1800 700 800 800
5 10000 12000 800 8000 900
Fixed Cost 3000 2000 2000 3000 4000
Total Annual Cost if selected 19,900 17,700 9,600 14,800 11,100

If only one warehouse is going to be built, location C should be selected

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 41
Example 5
• If two warehouses are built: one on site B and one on site C
Warehouse Locations
Customer Locations
A B C D E
1 100 500 1800 1300 1700
2 1500 200 2600 1400 1800
Cost of supplying
3 2500 1200 1700 300 1900
the demand
4 2800 1800 700 800 800
5 10000 12000 800 8000 900
Fixed Cost 3000 2000 2000 3000 4000
Total Annual Cost if selected 3,900 3,500

The total cost would be: TC = 500 + 200 + 1200 + 2000 + 700 + 800 + 2000 = 7,400

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 42

Example 5
• If three warehouses are to be built, i.e., at A, B & C
Warehouse Locations
Customer Locations
A B C D E
1 100 500 1800 1300 1700
2 1500 200 2600 1400 1800
Cost of supplying
3 2500 1200 1700 300 1900
the demand
4 2800 1800 700 800 800
5 10000 12000 800 8000 900
Fixed Cost 3000 2000 2000 3000 4000
Total Annual Cost if selected 3,100 3,400 3,500

The total cost would be: TC = 3,100 + 3,400 + 3,500 = 10,000

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 43

Example 5
• If three warehouses are to be built, i.e., at B, C & D
Warehouse Locations
Customer Locations
A B C D E
1 100 500 1800 1300 1700
2 1500 200 2600 1400 1800
Cost of supplying
3 2500 1200 1700 300 1900
the demand
4 2800 1800 700 800 800
5 10000 12000 800 8000 900
Fixed Cost 3000 2000 2000 3000 4000
Total Annual Cost if selected 2,700 3,500 3,300

The total cost would be: TC = 2,700 + 3,500 + 3,300 = 9,500

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 44

Example 6
A warehouse company plans to locate its regional warehouse in Miami, Florida, to serve the south
eastern part of the country. The company has four sites to choose from. Monthly costs of meeting the
customers’ demands and annual rental cost for each of these four facilities are summarized below.
Determine the optimal size for the distribution centre such that the overall yearly cost is minimized.
Customer A B C D
1 12,000 20,000 15,000 24,000
2 18,000 20,000 10,000 15,000
3 25,000 20,000 12,000 32,000
4 16,000 18,000 10,000 24,000
5 52,000 48,000 25,000 58,000
6 32,000 30,000 10,000 55,000
Total Rental Cost / Year 50,000 75,000 72,000 45,000

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 45

Example 6
Customers A B C D
1 $12,000 $20,000 $15,000 $24,000
2 $18,000 $20,000 $10,000 $15,000
3 $25,000 $20,000 $12,000 $32,000
4 $16,000 $18,000 $10,000 $24,000
5 $52,000 $48,000 $25,000 $58,000
6 $32,000 $30,000 $10,000 $55,000
Total Rental Cost / Year $50 000 $75 000 $72 000 $45 000
Rental Cost / month $4,167 $6,250 $6,000 $3,750
Total monthly cost: $159,167 $162,250 $88,000 $211,750
a. 1 Warehouse
Sites A B C D
Total cost per month $159,167 $162,250 $88,000 $211,750
Select site C, TC = 88,000/month = 1,056,000/year

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 46

Example 6
• 2 warehouses
Additional Facility Customer Served
A 1
B -
D -
Monthly Net Savings
3,000 – 4,167 = – 1,167
0 – 6,250 = – 6,250
0 – 3,750 = – 3,750

• No additional warehouse is justified. Locate warehouse at site C, total monthly cost is $88,000

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 47

Covering Problems
• In general, covering problems are discrete-space location problems and consist of either:
• Determining the minimum number of new facilities required to cover a set of existing facilities.
• Or determining the locations of a specific number of new facilities to maximize the number of
existing facilities covered by a specified number of new facilities
• By cover we often mean that the distance between the new facility and an existing facility is less
than some specified maximum value. As such, covering problems are typically formulated as zero-
one (0-1) or binary linear programming problems

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 48

Covering Problems – Classification
• Total Cover Problem
• Given n sites, and m existing facilities, determine the minimum (w.r.t to a cost) number of new
facilities and their location to cover all of the existing facilities
• Partial Cover Problem
• Given n sites, at most k new facilities, and m existing facilities, determine the location of the new
facilities such that maximum existing facilities are covered

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 49

Total Cover Problem
• Total cover problem can be formulated as follows:
3

𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑧 = ' 𝑐0 𝑥0
012
subject to
3

' 𝑎40 𝑥0 ≥ 1 ∀𝑖
012
𝑥0 ∈ 0, 1 ∀𝑗
1 𝑖𝑓 𝑒𝑥𝑖𝑠𝑖𝑡𝑖𝑛𝑔 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑖 𝑖𝑠 𝑐𝑜𝑣𝑒𝑟𝑒𝑑 𝑏𝑦 𝑛𝑒𝑤 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑎𝑡 𝑗
𝑎40 = 2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
𝑐40 = cost of opening a new facility at site j
1 𝑖𝑓 𝑛𝑒𝑤 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑜𝑛 𝑠𝑖𝑡𝑒 𝑗
𝑥40 = 2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 50

Partial Cover Problem
• Partial cover problem can be formulated as follows:
3

𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑧 = ' 𝑎40 𝑥0

012
subject to
3

' 𝑥0 ≤ 𝑘
012
𝑥0 ∈ 0, 1 ∀𝑗
1 𝑖𝑓 𝑒𝑥𝑖𝑠𝑖𝑡𝑖𝑛𝑔 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑖 𝑖𝑠 𝑐𝑜𝑣𝑒𝑟𝑒𝑑 𝑏𝑦 𝑛𝑒𝑤 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑎𝑡 𝑗
𝑎40 = 2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
𝑘 = maximum number of available facilities
1 𝑖𝑓 𝑛𝑒𝑤 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑜𝑛 𝑠𝑖𝑡𝑒 𝑗
𝑥40 = 2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 51

Example 7
A telecommunications company must decide where to locate cell phone towers. The budget allows no more than three to be installed in a
particular city. The city has been divided into 10 zones; eight potential sites have been identified for the cell phone towers. A survey has
been conducted to estimate how many cell phone customers will need to be served within each zone. It is desired to locate the cell phone
towers so the largest number of customers are covered. The aij cover coefficients (expressed in thousands of customers) reflect the
maximum number of potential cell phone customers in zone i. Since the number of customers is independent of where the cell phone
towers are located, the cover coefficients are identical for all values of j that provide coverage for a given zone
Cell Phone Tower Site
Zone i
1 2 3 4 5 6 7 8
1 50 50 0 0 0 0 0 0
2 25 0 0 0 0 25 0 0
3 0 0 15 0 0 15 0 15
4 0 0 25 0 0 25 25 25
5 0 0 50 0 0 0 50 50
6 0 0 0 35 0 0 35 0
7 0 0 0 50 0 0 0 0
8 0 0 0 35 35 0 0 0
9 0 45 0 0 45 0 0 0
10 30 30 0 0 30 0 0 0

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 52

Example 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 53

Example 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 54

Example 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 55

Partial Cover Problem
• Applying SOLVER with a limit of, at most, three cell phone towers, the SOLVER solution obtained is
for x2 = x4 = x7 = 1, and all other decision variables equal 0
• With cell phone towers located at sites 2, 4, and 7, a total coverage of 320,000 out of a maximum of
360,000 customers will occur
• Unfortunately, that is not the optimum solution. If cell phone towers are placed at sites 2, 3, and 4 or
2, 4, and 8, then a coverage of 335,000 customers will occur
• We will therefore apply a greedy algorithm

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 56

Greedy Algorithm
1. Sum the cover coefficients in each column
2. Select the site covering the most customers
3. Eliminate rows in the cover matrix that were covered by site in step 2
4. Sum the remaining cover coefficients in each column
5. Select the site covering the most customers
6. Eliminate rows in the cover matrix that were covered by site in step 4
7. Sum the remaining cover coefficients in each column
8. Continue Step 4 till maximum allowable sites are achieved

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 57

Example 7 – 1
Cell Phone Tower Site Cell Phone Tower Site
Zone i Zone i
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
1 50 50 0 0 0 0 0 0 1 50 50 0 0 0 0 0 0
2 25 0 0 0 0 25 0 0 2 25 0 0 0 0 25 0 0
3 0 0 15 0 0 15 0 15 3 0 0 15 0 0 15 0 15
4 0 0 25 0 0 25 25 25 4 0 0 25 0 0 25 25 25
5 0 0 50 0 0 0 50 50 5 0 0 50 0 0 0 50 50
6 0 0 0 35 0 0 35 0 6 0 0 0 35 0 0 35 0
7 0 0 0 50 0 0 0 0 7 0 0 0 50 0 0 0 0
8 0 0 0 35 35 0 0 0 8 0 0 0 35 35 0 0 0
9 0 45 0 0 45 0 0 0 9 0 45 0 0 45 0 0 0
10 30 30 0 0 30 0 0 0 10 30 30 0 0 30 0 0 0

Sxij 105 125 90 120 110 65 110 90

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 58

Example 7 – 1
Cell Phone Tower Site Cell Phone Tower Site
Zone i Zone i
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
1 50 50 0 0 0 0 0 0 1 50 50 0 0 0 0 0 0
2 25 0 0 0 0 25 0 0 2 25 0 0 0 0 25 0 0
3 0 0 15 0 0 15 0 15 3 0 0 15 0 0 15 0 15
4 0 0 25 0 0 25 25 25 4 0 0 25 0 0 25 25 25
5 0 0 50 0 0 0 50 50 5 0 0 50 0 0 0 50 50
6 0 0 0 35 0 0 35 0 6 0 0 0 35 0 0 35 0
7 0 0 0 50 0 0 0 0 7 0 0 0 50 0 0 0 0
8 0 0 0 35 35 0 0 0 8 0 0 0 35 35 0 0 0
9 0 45 0 0 45 0 0 0 9 0 45 0 0 45 0 0 0
10 30 30 0 0 30 0 0 0 10 30 30 0 0 30 0 0 0

Sxij 25 90 120 35 65 110 90 Sxij 25 90 0 65 75 90

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 59

Example 7 – 1
1. Sum the cover coefficients in each column.
2. Select the site covering the most customers. (In this case, site 2 is chosen because it covers 125,000 customers)
3. Eliminate rows in the cover matrix that were covered by site 2
4. Sum the remaining cover coefficients in each column
5. Select the site covering the most customers (In this case, site 4 is chosen because it covers 120,000 customers)
6. Eliminate rows in the cover matrix that were covered by site 4
7. Sum the remaining cover coefficients in each column
8. Select the site covering the most customers (In this case, sites 3 and 8 tie; each covers the same 90,000 customers in
zones 3, 4, and 5)
9. Since the maximum allowable number of cell phone towers (3) have been assigned to sites, the search ends with the
following solutions: x2 = x4 = x3 = 1 and x2 = x4 = x8 = 1, with a total coverage of 335,000 customers

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 60

Example 8
A major retail firm is considering a major change in its distribution system. Specifically, in the past, it
shipped merchandise from a few distribution centers (DCs) to its stores on a weekly basis. Consumer
surveys indicate that sales are being lost because of out-of-stock situations occurring. The competition
seems to be able to maintain its inventory in its stores without incurring excessive inventory costs.
Among the options being considered is locating distribution centers such that all retail stores can be
replenished within 24 hours of a request for merchandise. To evaluate the feasibility of such an
approach, a region of the country with numerous stores is to serve as a test region. Shown in Table is a
matrix of cover coefficients for 10 stores and 10 potential sites for distribution centers. If store i can be
replenished within 24 hours from site j, then aij = 1; otherwise, aij = 0

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 61

Example 8
Distribution Centre Site
Store i
1 2 3 4 5 6 7 8 9 10
1 1 1 0 0 0 0 0 1 1 1
2 1 1 1 0 0 0 0 0 0 0
3 1 1 0 1 1 0 0 1 1 0
4 0 0 1 0 1 1 1 0 1 1
5 0 0 1 1 0 1 1 1 1 0
6 0 0 0 1 1 1 1 0 0 1
7 0 1 0 1 0 1 0 1 1 0
8 1 1 1 0 1 0 0 1 1 1
9 1 0 1 1 1 0 1 0 0 1
10 0 0 1 0 0 1 1 1 1 1

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 62

Example 8

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 63

Example 8

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 64

Example 8

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 65

Example 8

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 66

Network Location Problems
• One or more new facilities are located on a network
• The network represents the actual distances between new and existing facilities
• The travel path is used to calculate the distance
• More difficult to solve because of multiple paths connecting any two points on the network –
cyclical networks
• We will consider only tree networks

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 67

Network Location Problems 1

• Tree network does not have cycles – A unique

path exists between any two points on the
network 2 3

• Median problems (minisum equivalent)

• n – Median problem 4 5 6 7 8

• 1 – Median problem
• Center problem (minimax equivalent)
10 9

• n – Centre problem
• 1 – Centre problem
11

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 68

1 – Median Problem
• Objective is to minimize the sum of weighted distances between the new facility and all the existing
ones
%

𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑓 𝑥 = 1 𝑤" 𝑑(𝑥, 𝑣" )

"#$

𝑑(𝑥, 𝑣" ) ……… distance between a point on the tree (x) and vertex i
• Two Algorithms for 1 – Median problem
1. Chinese algorithm
2. Majority algorithm

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 69

1-Median Problem – Chinese Algorithm
• Chinese algorithm is due to a Chinese poem that stated the algorithm, which was based on locating
a threshing floor for wheat in China
• Goal was to locate on a road network the best place for the threshing floor, which served wheat
fields located at vertices of the tree network
• Procedure:
1. Trim a branch from the tree that has the smallest weight and add the weight to the vertex from
which the branch emanated
2. Break ties arbitrarily
3. Continue the process until only one vertex remains (= location of the new facility)

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 70

Example 9 Distance between
two adjacent nodes
3 1

A central warehouse is to be located close to 11 4

existing manufacturing facilities which it will
8
serve. The road network among the facilities is 0 2 3 5

simplified by the tree network shown below. Due

6
to terrain difficulties, it is impossible to travel
from v5 to v10 without passing through v6 and v9. 4
8 5
8 6
10 7
4 8
2
Similarly, to travel from v3 to v6, one needs to go 0
0 6 2 3
through v2 and v5. Distances and the travel
frequencies are shown on the figure. 5 10
8 9
4
Weight – No of travel
Find the location for the new warehouse through 6
times between the
locations of existing
Chinese algorithm facilities & warehouse
11
7 Does not include “pass
through travel”

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 71

Example 9
• Trim a branch from the tree that has the smallest weight and add the weight to the vertex from which the branch emanated
Trim Node 4 – add the weight to weight of node 5

3 1 3 1

4 4
2
8 3 2
8 3
0 5 0 5

6 6
4 8 5 8 6 10 7 4 8 5 8 6 10 7 4 8
2
0 0 2 0
2 3 2 3
6 6
10
8 9 10
8 9
5 4 5 4

6 6
11 11
7 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 72

Example 9
Node 1 & 8 have same weight – Select arbitrarily, TRIM Node 1
& add weight to node 2

3 1

2
8 3
4 3 5

2
8 3 6
0 5
5
8 6
10 7
4 8
6
2 0
5
8 6
10 7
4 8 2 3
6
2 0 10
8 9
2 3 5 4
6
10
8 9 6
5 4
11
6 7

11
7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 73

Example 9
Node 8 has the lowest weight – TRIM Node 3, 7 and 10 have same weight.
node 8 and add weight to node 7 TRIM node 3 and add to node 2

2
8 3 2
8 3 2
3 5 3 5 8

6 6 6
5
8 6
10 7
4 8 5
8 6
10 7 5 8 6 10 7

2 0 2 0 2 0
6 2 3 5 5
6 6
10
8 9 10
8 9 10
8
5 4 5 4 5 9
4

6 6 6
11 11 11
7 7 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 74

Example 9
Node 7 and 10 have same weight. Node 11 has smallest weight. Node 11 has smallest weight.
TRIM node 7 and add to node 6 TRIM node 11 and add to node 9 TRIM node 11 and add to node 9

8 2 8 2 8 2 8 2

6 6 6 6
5 8 6 10 7 5
8 6 5
8 6 5 8 6

2 0 2 5 2 5 2 5
5
6 6 6 6
10
8 9 10
8 9 9 9
5 4 5 4 9 16

6 6 6
11 11 11
7 7 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 75

Example 9
Node 2 has smallest weight. TRIM Node 5 has smallest weight. TRIM Node 6 has smallest weight. TRIM
node 2 and add to node 5 node 5 and add to node 6 node 6 and add to node 9

2 5
8 6 6
8 9
31
10 5 15
6 6 6
5 8 6 9 9 1
16 16
2 5
6 2 3

9
16 The location of the
WAREHOUSE is therefore 4 5 6 7 8

at NODE 9
10 9

11

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 76

1-Median Problem – Majority Algorithm
• Majority algorithm finds an optimum location which has half the total weight to either side of it
• Procedure
• Calculate half the total weight on the tree
• Trim a branch from the tree that has the greatest weight and add the weight to the vertex from
which the branch emanated
• Break ties arbitrarily
• Continue the process until at least half the total weight is at one node (= location of the new
facility)

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 77

Example 10
• Calculate half the total weight on the tree
• Half the total weight = (3 + 0 + 5 + 2 + 0 + 0 + 2 + 3 + 5 + 4 + 7)/2 = 31/2 = 15.5
• Trim a branch from the tree that has the greatest weight and add the weight to the vertex from which
the branch emanated Þ Trim node 11
• See if at least half the total weight is at one node Þ Not yet, trim node 10

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 78

Example 10
Trim a branch from the tree that has the greatest weight and add the weight to the vertex from which the branch emanated

3 1 3 1

4 4
2
8 3 2
8 3
0 5 0 5

6 6
4 8 5 8 6 10 7 4 8 4 8 5 8 6 10 7 4 8
2 2
0 0 0 0
2 3 2 3
6 6
10
8 9 10
8 9
5 4 5 11

6
11
7 w9 = 11
Greatest not yet half the total weight
Weight

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 79

Example 10
Continue the process until at least half the total weight is at one node

3 1 3 1

4 4
2
8 3 2
8 3
0 5 0 5

6 6
4 8 5 8 6 10 7 4 8 4 8 5 8 6 10 7 4 8
2 2
0 0 0 0
2 3 2 3
6 6
10
8 9 9
5 11 16

Node 3 & 10 have same maximum weight w9 = 16 > 15.5

Arbitrarily select node 10 and TRIM half the total weight is at node 9

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 80

1 – Center Problem
• Objective is to minimize the maximum weighted distance between a new facility and any other existing facility
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑓 𝑥 = max 𝑤4 𝑑 𝑥, 𝑣2 , 𝑤4 𝑑 𝑥, 𝑣2 , … … … … … , 𝑤6 𝑑(𝑥, 𝑣7 )
25456
• The new facility is located at a point x* in the tree network. To find the point we need to:
• Calculate bij values for all the pairs of nodes
𝑤4 𝑤0 𝑑(𝑣4 , 𝑣0 )
𝑏40 =
(𝑤4 +𝑤0 )
• Determine the maximum value bst
𝑏89 = 𝑚𝑎𝑥 𝑏40 : 1 = 𝑖 < 𝑗 = 𝑚
• x* is located on the path connecting vs and vt
∗
𝑤9 𝑑(𝑣8 , 𝑣9 )
𝑑 𝑥 , 𝑣9 =
(𝑤8 + 𝑤9 )

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 81

Example 11
• Consider the previous problem with the warehouse
Only vertices with positive-valued weights & TRIM others

3 1 3 1

4 4
2
8 3
8 2
0 5 5

6 6
4 8 5 8 6 10 7 4 8 3 8 8 10 4 4 5
2 2
0 0 6 2 3
2 3
6
10
8 7
8 6
5 9 5 4
4

6 6
11 8
7 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 82

Example 11
• The new facility is located at a point x* in the tree network. To find the point we need to Calculate bij values for all the
pairs of nodes
2×4×(8 + 8 + 6)
𝑤& 𝑤! 𝑑(𝑣& , 𝑣! ) 𝑏)* = = 29.33 3 1
𝑏&! = (2 + 4)
(𝑤& +𝑤! )
Facility 4
Facility
1 2 3 4 5 6 7 8 8 2 5
1 0 22.5 21.6 33.6 48 41.143 60 63
2 0 31.429 45.7144 67.5 62.222 90 99.167 6
3 0 22 31.2 29.333 42.857 43.556 8 8 10 4
3 4 5
4 0 4.8 21.333 34.286 34.222 2
5 0 34.386 52.5 54.6 6 2 3
6 0 17.778 15.273
7 0 40.833 7
8 6
5 4
8 0
6
3×5×(4 + 8) 5×7×(8 + 6 + 8 + 6 + 6)
𝑏#( = = 22.5 𝑏(+ = = 29.33 8
(3 + 5) (5 + 7) 7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 83

Example 11
• Determine the maximum value bst

• b28 = 99.167 corresponds to vertices 2 and 8 3 1

• x* is located on the path connecting vertex 2 and vertex 8 4

8
∗
𝑤" 𝑑(𝑣# , 𝑣" ) 2 5
𝑑 𝑥 , 𝑣" =
(𝑤# + 𝑤" ) 6
3 8 8 10 4 4 5
• Since d(v2, v8) = 34, w2 = 5, and w8 = 7, the distance from 2
$×('()('()()) 6
v2 to x * along the path to v8 equals ($(+)
, or 2 3
8
19.833 5 7 6
4

,,..)+ 6
• Another way to determine the distance is $
, or 19.833
8
7

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 84

Questions?????

DR IMRAN ALI CHAUDHRY ISE 422 Facility Layout and Location 85