Location. Where to put facilities? Transportation costs Rates and distances Volumes to be moved Other issues Market presence (speed to market) Fixed costs. 1-Dimensional Intuition. Customers. -6. -5. -4. -3. -2. -1. 0. 1. 2. 3. 4. 5. 6. Where to locate?.
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Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate?
Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate?
1-Dimensional Intuition
Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate?
1-Dimensional Intuition
Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate
What about “Weight”
Weight 3
Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate?
What about “Weight”
Weight 2
Customers
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
Where to locate?
D
5
D
4
Manhattan Metric or L1 norm
Distance 4 + 5 = 9
7
7
4
4
1
1
2
2
5
5
3
3
8
8
9
9
10
10
6
6
D
Y
D
D
D
Where to locate?
X
D
D
D
D
7
7
4
4
1
1
2
2
5
5
3
3
8
8
9
9
10
10
6
6
2-Dimensions
Y
Where to locate?
X
D
D
D
D
D
4
7
1
7
4
2
5
1
3
2
5
3
8
9
8
9
6
10
10
6
Y
X
D
D
D
D
associated with each location