Costing models

Bannerman Industries want to build a depot to serve seven major customers located at coordinates (100, 110),
(120,130), (220, 150), (180, 210), (140, 170), (130, 180) and (170, 80).
Average weekly demands, in vehicle loads, are 20, 5, 9, 12, 24, 11 and 8 respectively.
Three alternative locations are available at (120, 90), (160, 170) and (180,130).
Which is the best site if operating costs and inward transport costs are the same for each location?
A B C D E F G H
1 Customer SITE A SITE B SITE C
2 LOAD DISTANCE Distance * DISTANCE Distance * DISTANCE Distance *
Load Load Load
3 1 20 40 800 120 2400 100 2000
4 2 5
5 3 9
6 4 12
7 5 24
8 6 11
9 7 8
10
11 TOTALS T= T= T=

DISTANCE SITE A
Rectilinear distance = difference in + difference in = (120–100) + (110–90) = 40
X co-ordinates Y co-ordinates

DISTANCE SITE B DISTANCE SITE C

(160-100)+(170-110) = 60+60+120 (180-100)+(130-110) = 80+20=100