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Lecture Outline
Types of Facilities Site Selection: Where to Locate Location Analysis Techniques
Supplement 7-2
Types of Facilities
Heavy-manufacturing facilities
Light-industry facilities
smaller, cleaner plants and usually less costly smallest and least costly
Supplement 7-3
Supplement 7-5
Supplement 7-6
Supplement 7-8
Supplement 7-9
Location Incentives
Tax credits Relaxed government regulation Job training Infrastructure improvement Money
Supplement 7-10
Center-of-gravity
Load-distance
Supplement 7-11
Supplement 7-12
Weighted Score for Labor pool and climate for Site 1 = (0.30)(80) = 24
Supplement 7-13
Supplement 7-14
Supplement 7-15
Center-of-Gravity Technique
Locate facility at center of geographic area Based on weight and distance traveled establish grid-map of area Identify coordinates and weights shipped for each location
Copyright 2006 John Wiley & Sons, Inc. Supplement 7-16
Grid-Map Coordinates
y 2 (x2, y2), W2
i=1 x=
xiWi y= Wi
i=1
yiWi
y2 1 (x1, y1), W1
i=1
i=1
Wi
y1
y3
3 (x3, y3), W3
where, x, y = coordinates of new facility at center of gravity xi, yi = coordinates of existing facility i Wi = annual weight shipped from facility i
x1
x2
x3
x
Supplement 7-17
C
600 500 Miles 400 300 200 100 0
B (105)
(135)
x y Wt
A 200 200 75
D 500 300 60
D A (75) (60)
xiWi Wi
i=1 n
y=
n
i=1
yiWi
i=1
Wi
Supplement 7-19
C
600 500 Miles 400 300 200 100 0
B (105)
(135)
x y Wt
A 200 200 75
D 500 300 60
(75)
Supplement 7-21
Load-Distance Technique
Compute (Load x Distance) for each site Choose site with lowest (Load x Distance) Distance can be actual or straight-line
Supplement 7-22
Load-Distance Calculations
LD =
where, LD = li di di = = = load-distance value load expressed as a weight, number of trips or units being shipped from proposed site and location i distance between proposed site and location i (xi - x)2 + (yi - y)2
ld
i
i=1
where, (x,y) = coordinates of proposed site (xi , yi) = coordinates of existing facility
Copyright 2006 John Wiley & Sons, Inc. Supplement 7-23
Load-Distance: Example
Potential Sites Site X 1 360 2 420 3 250 Y 180 450 400 A 200 200 75 Suppliers B C 100 250 500 600 105 135 D 500 300 60
X Y Wt
Compute distance from each site to each supplier Site 1 dA = dB = (xA - x1)2 + (yA - y1)2 = (200-360)2 + (200-180)2 = 161.2 (100-360)2 + (500-180)2 = 412.3
dC = 434.2
dD = 184.4
Supplement 7-24
Compute load-distance
LD =
ld
i
i=1
Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063 Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,791 Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*
* Choose site 3
Copyright 2006 John Wiley & Sons, Inc. Supplement 7-25
Supplement 7-26
Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein. Copyright 2006 John Wiley & Sons, Inc. Supplement 7-27