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POM-QM LOCATION ANALYSIS PowerPoint PPT Presentation

POM-QM LOCATION ANALYSIS. Prepared by: Hanife Demiralp Source: POM-QM for Windows Version 3. LOCATION.

POM-QM LOCATION ANALYSIS

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POM-QM LOCATION ANALYSIS

Prepared by: Hanife Demiralp

Source: POM-QM for Windows Version 3

LOCATION

Qualitative (Weighting)Model: If qualitative model is chosen, general framework is given by the number of factors and the number of potential sites. Weights should be given for each factor and sum of weights are 1 or 100, but this is not requirement. Scores of each city on each factor should be given.

Example 1: Weighted Location (qualitative) Analysis:

The scores of each city on each factor.

Total weighted score of Philadelphia= (10*90)+(30*80)+(5*60)+(15*90)+(20*50)+(10*40)+(5*30) = 6500

Example 2: One Dimensional Siting:

It is the coordinate of location. It may be street address, floors in building, or east-west, north-south. Negative value means west or south and positive means east or north

Includes the weight of materials or trips made to customer. It is 1 if all customers considered equal.

Example 3: Two-Dimensional Location:

The difference between one dimensional location and two-dimensional location is; in two dimensional location we have extra coordinate as y-coordinate.

Table of Distances

Raw material 1 has total distance 997.67 from each of other six sites.

Potential site 1 is more central than potential site 2. Because site 1 distance smaller than site 2 distance

Example 4: Breakeven Analysis

Fixed cost is the cost that you must pay every month such as worker salary.

Variable cost can include energy supply, materials costs.

Location Results:

Results Table shows us, Location 1 is better than others. Because; revenue of location 1 is greater than other two locations and total costs of location 1 is less than other two locations.