Facility Location OPS 370. Where Would You Locate? Amusement Park Pharmacy Distribution Center Chemical Plant.

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Presentation transcript:

Facility Location OPS 370

Where Would You Locate? Amusement Park Pharmacy Distribution Center Chemical Plant

Facility Location

Types of Facilities 1. Heavy Manufacturing – Ex. Auto plants, steel mills, chemical plants 2. Light Manufacturing – Ex. Electronics assembly 3. Warehouse & Distribution Centers 4. Retail & Service Facilities

Factors for Heavy & Light Manufacturing

Factors for Warehouse & DC

Factors for Retail & Service

Location Analysis Techniques 1. Center-of-Gravity Heuristic – A. Identify a point that achieves low transportation cost based on straight line distances 2. Location Factor Rating – A. Compare and rate specific sites based on various factors

Center-of-Gravity Heuristic

Center-of-Gravity Heuristic Formulas where, x, y =coordinates of the new facility at center of gravity x i, y i =coordinates of supplier or customer i V i =annual load weight shipped from supplier or to customer i  n ViViViVi i = 1  x i V i i = 1 n x =  n ViViViVi i = 1  yiViyiViyiViyiVi n y = x1x1x1x1 x2x2x2x2 x3x3x3x3x y2y2y2y2y y1y1y1y1 y3y3y3y3 1 (x 1, y 1 ), l 1 2 (x 2, y 2 ), l 2 3 (x 3, y 3 ), l 3

Center-of-Gravity Example Customer ABCD Customer ABCD x i y i V i y x A B C D (135) (105) (75) (60) Miles Miles

Center-of-Gravity Example x = = = n  ViVi i = 1  xiVixiVi n  n ViVi  yiliyili n y = = = (200 x 75) + (500 x 105) + (600 x 135) + (300 x 60) (200 x 75) + (100 x 105) + (250 x 135) + (500 x 60)

Center-of-Gravity Example ABCD x i y i V i y x A B C D (135) (105) (75) (60) Miles Miles

Location Factor Rating

Location Factor Rating Example FactorWeight Site ScoresWeighted Score Labor Market Utilities Road Access Rail Access Community Total Evaluate three different sites

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