C HASE A QUILANO J ACOBS. Operations Management. For Competitive Advantage. Technical Note 9. Facility Location. ninth edition. Chapter 9 Facility Location. Issues in Facility Location Various Plant Location Methods. Competitive Imperatives Impacting Location.
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For Competitive Advantage
Technical Note 9
Two refineries sites (A and B) are assigned the following range of point values and respective points, where the more points the better for the site location.
Major factors for site location
Best Site is B
Total pts. 528 558
Cx = X coordinate of center of gravity
Cy = X coordinate of center of gravity
dix = X coordinate of the ith location
diy = Y coordinate of the ith location
Vi = volume of goods moved to or from ith
XPlant Location Methodology: Example of Center of Gravity Method
Question: What is the best location for a new Z-Mobile warehouse/temporary storage facility considering only distances and quantities sold per month?
XPlant Location Methodology: Example of Center of Gravity Method: Determining Existing Facility Coordinates
To begin, you must identify the existing facilities on a two-dimensional plane or grid and determine their coordinates.
You must also have the volume information on the business activity at the existing facilities.
XPlant Location Methodology: Example of Center of Gravity Method: Determining the Coordinates of the New Facility
You then compute the new coordinates using the formulas: