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Mcgraw-Hill/Irwin © 2006 The Mcgraw-Hill Companies, Inc., All Rights Reserved
Mcgraw-Hill/Irwin © 2006 The Mcgraw-Hill Companies, Inc., All Rights Reserved
Mcgraw-Hill/Irwin © 2006 The Mcgraw-Hill Companies, Inc., All Rights Reserved
Technical Note 11
Facility Location
OBJECTIVES
Issues in Facility Location
Competitive Imperatives
Impacting Location
The need to produce close to the
customer due to time-based
competition, trade agreements, and
shipping costs
Proximity to Customers
Business Climate
Total Costs
Infrastructure
Quality of Labor
Suppliers
Other Facilities
C
dd VV
ix ii
dd VV iy ii
Cxx == ix
C
Cyy ==
iy
VV ii
VV ii
Where:
Cx = X coordinate of centroid
Cy = X coordinate of centroid
dix = X coordinate of the ith location
diy = Y coordinate of the ith location
Vi = volume of goods moved to or from ith
location
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11
D A 1250
(250,580)
D 1900
A
(100,200)
Q 2300
(0,0) X
Question:
Question:What
Whatis
isthe
thebest
bestlocation
locationfor
foraanew
newZ-Mobile
Z-Mobile
warehouse/temporary
warehouse/temporarystorage
storagefacility
facilityconsidering
consideringonly
only
distances
distancesand
andquantities
quantitiessold
soldper
permonth?
month?
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12
dimensional
dimensionalplane
planeor
orgrid
gridand
and D
(250,580)
determine
determinetheir
theircoordinates.
coordinates.
A
(100,200)
(0,0) X
Q 2300
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13
You
Youthen
thentake
takethe
thecoordinates
coordinatesand
andplace
placethem
themon
onthe
themap:
map:
Y
S ho wro o m No o f Z-Mo b ile s
Q New
New s o ld p e r mo nth
(790,900)
location
location
ZZ
D
(250,580) of
offacility
facility A 1250
ZZabout
about
A D 1900
(100,200) (443,627)
(443,627)
(0,0) X Q 2300
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14
End of Technical
Note 11