Facility Location Planning. Location Planning. Interrelated facility planning decisions: Location of facilities: geographic placement Number of facilities: facility types (manufacturing plants, distribution centers, retail outlets, etc.) which make up distribution network
This must also consider the layout.
4. Allocation of customers to facilities: order processing and fulfillment
3. “Satisficing” solutions
2. Complex cost model combined with a simple heuristic method to minimize the cost function
A paint manufacturer would like to locate a retail store. A list of important location factors is presented below. Factor weights are assigned a number from 1 to 10 according to their relative importance of each factor (10 being most important). Each location factor is scored on a scale from 1 to 10 (10 representing the most favorable status).
8 Proximity to competition 5 40
5 Rent/lease considerations 3 15
8 Parking Space 10 80
7 Proximity to complementary stores 8 56
6 Modernity of store space 9 54
Total Score: 245