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Facility Location Models
Lecture Outline ,[object Object],[object Object],[object Object],[object Object],Supplement 7-
Types of Facilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supplement 7-
Factors in Heavy  Manufacturing Location Supplement 7- ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors in Light Industry Location ,[object Object],[object Object],[object Object],[object Object],Supplement 7-
Factors in Retail Location Supplement 7- ,[object Object],[object Object]
Site Selection: Where to Locate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright 2011 John Wiley & Sons, Inc. Supplement 7-
Global Supply Chain Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supplement 7-
Regional and Community Location Factors in U.S. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supplement 7-
Regional and Community Location Factors in U.S. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supplement 7-
Location Incentives Supplement 7- ,[object Object],[object Object],[object Object],[object Object],[object Object]
Geographic Information Systems (GIS) ,[object Object],[object Object],[object Object],Supplement 7-
GIS Diagram Supplement 7-
Location Analysis Techniques Supplement 7- ,[object Object],[object Object],[object Object]
Location Factor Rating Supplement 7- ,[object Object],[object Object],[object Object],[object Object]
Location Factor Rating Supplement 7- Labor pool and climate Proximity to suppliers Wage rates Community environment Proximity to customers Shipping modes Air service LOCATION FACTOR .30 .20 .15 .15 .10 .05 .05 WEIGHT 80 100 60 75 65 85 50 Site 1 65 91 95 80 90 92 65 Site 2 90 75 72 80 95 65 90 Site 3 SCORES (0 TO 100) Weighted Score for “Labor pool and climate” for  Site 1 = (0.30)(80) = 24
Location Factor Rating Supplement 7- 24.00 20.00 9.00 11.25 6.50 4.25 2.50 77.50 Site 1 19.50 18.20 14.25 12.00 9.00 4.60 3.25 80.80 Site 2 27.00 15.00 10.80 12.00 9.50 3.25 4.50 82.05 Site 3 WEIGHTED SCORES Site 3 has the highest factor rating
Location Factor Rating With Excel Supplement 7-
Location Factor Rating With OM Tools Supplement 7-
Center-of-Gravity Technique Supplement 7- ,[object Object],[object Object],[object Object]
Grid-Map Coordinates Supplement 7- where, x ,  y  = coordinates of  new facility at center of gravity x i , y i   = coordinates of existing facility  i W i  = annual weight shipped from facility  i  n W i i =  1  x i W i i =  1 n x =  n W i i =  1  y i W i i =  1 n y = x 1 x 2 x 3 x y 2 y y 1 y 3 1 ( x 1 ,  y 1 ),  W 1 2 ( x 2 ,  y 2 ),  W 2 3 ( x 3 ,  y 3 ),  W 3
Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles
Center-of-Gravity Technique Supplement 7- x  =  =  = 238 n  W i i =  1  x i W i i =  1 n  n W i i =  1  y i W i i =  1 n y  =  =  = 444 (200)(75) + (500)(105) + (600)(135) + (300)(60) 75 + 105 + 135 + 60 (200)(75) + (100)(105) + (250)(135) + (500)(60) 75 + 105 + 135 + 60
Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles Center of gravity  (238, 444)
Center-of-Gravity With Excel Supplement 7- Formula for  x  coordinate
Center-of-Gravity With OM Tools  Supplement 7- Copyright 2011 John Wiley & Sons, Inc.
Load-Distance Technique ,[object Object],[object Object],[object Object],Copyright 2011 John Wiley & Sons, Inc. Supplement 7-
Load-Distance Calculations Supplement 7- LD =   load-distance value l i   =   load expressed as a weight, number of trips or units being shipped from  proposed site and location  i d i   =   distance between  proposed site and location  i d i   =    ( x i  - x ) 2  + ( y i  - y ) 2 ( x,y )  =  coordinates of proposed site ( x i  , y i )  =  coordinates of existing facility where, where,  l i  d i i =  1 n LD =
Load-Distance Supplement 7- Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 Suppliers A B C D X 200 100 250 500 Y 200 500 600 300 Wt 75 105 135 60 Compute distance from each site to each supplier =  (200-360) 2  + (200-180) 2 d A  =  (x A  - x 1 ) 2  + (y A  - y 1 ) 2 Site 1 = 161.2 =  (100-360) 2  + (500-180) 2 d B  =  (x B  - x 1 ) 2  + (y B  - y 1 ) 2 = 412.3 d C  = 434.2 d D  = 184.4
Load-Distance Supplement 7- Site 2 d A  = 333 d C  = 226.7 d B  = 323.9 d D  = 170 Site 3 d A  = 206.2 d C  = 200 d B  = 180.3 d D  = 269.3 Compute load-distance i = 1 n  l i  d i LD = 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) = 99,789 Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555* * Choose site 3
Load-Distance With Excel Supplement 7- =B7*C11+C7*C12+D7*C13+E7*C14
Load-Distance With OM Tools Supplement 7-

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Facility location models ppt @ DOMS

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  • 16. Location Factor Rating Supplement 7- Labor pool and climate Proximity to suppliers Wage rates Community environment Proximity to customers Shipping modes Air service LOCATION FACTOR .30 .20 .15 .15 .10 .05 .05 WEIGHT 80 100 60 75 65 85 50 Site 1 65 91 95 80 90 92 65 Site 2 90 75 72 80 95 65 90 Site 3 SCORES (0 TO 100) Weighted Score for “Labor pool and climate” for Site 1 = (0.30)(80) = 24
  • 17. Location Factor Rating Supplement 7- 24.00 20.00 9.00 11.25 6.50 4.25 2.50 77.50 Site 1 19.50 18.20 14.25 12.00 9.00 4.60 3.25 80.80 Site 2 27.00 15.00 10.80 12.00 9.50 3.25 4.50 82.05 Site 3 WEIGHTED SCORES Site 3 has the highest factor rating
  • 18. Location Factor Rating With Excel Supplement 7-
  • 19. Location Factor Rating With OM Tools Supplement 7-
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  • 21. Grid-Map Coordinates Supplement 7- where, x , y = coordinates of new facility at center of gravity x i , y i = coordinates of existing facility i W i = annual weight shipped from facility i  n W i i = 1  x i W i i = 1 n x =  n W i i = 1  y i W i i = 1 n y = x 1 x 2 x 3 x y 2 y y 1 y 3 1 ( x 1 , y 1 ), W 1 2 ( x 2 , y 2 ), W 2 3 ( x 3 , y 3 ), W 3
  • 22. Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles
  • 23. Center-of-Gravity Technique Supplement 7- x = = = 238 n  W i i = 1  x i W i i = 1 n  n W i i = 1  y i W i i = 1 n y = = = 444 (200)(75) + (500)(105) + (600)(135) + (300)(60) 75 + 105 + 135 + 60 (200)(75) + (100)(105) + (250)(135) + (500)(60) 75 + 105 + 135 + 60
  • 24. Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles Center of gravity (238, 444)
  • 25. Center-of-Gravity With Excel Supplement 7- Formula for x coordinate
  • 26. Center-of-Gravity With OM Tools Supplement 7- Copyright 2011 John Wiley & Sons, Inc.
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  • 28. Load-Distance Calculations Supplement 7- LD = load-distance value l i = load expressed as a weight, number of trips or units being shipped from proposed site and location i d i = distance between proposed site and location i d i = ( x i - x ) 2 + ( y i - y ) 2 ( x,y ) = coordinates of proposed site ( x i , y i ) = coordinates of existing facility where, where,  l i d i i = 1 n LD =
  • 29. Load-Distance Supplement 7- Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 Suppliers A B C D X 200 100 250 500 Y 200 500 600 300 Wt 75 105 135 60 Compute distance from each site to each supplier = (200-360) 2 + (200-180) 2 d A = (x A - x 1 ) 2 + (y A - y 1 ) 2 Site 1 = 161.2 = (100-360) 2 + (500-180) 2 d B = (x B - x 1 ) 2 + (y B - y 1 ) 2 = 412.3 d C = 434.2 d D = 184.4
  • 30. Load-Distance Supplement 7- Site 2 d A = 333 d C = 226.7 d B = 323.9 d D = 170 Site 3 d A = 206.2 d C = 200 d B = 180.3 d D = 269.3 Compute load-distance i = 1 n  l i d i LD = 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) = 99,789 Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555* * Choose site 3
  • 31. Load-Distance With Excel Supplement 7- =B7*C11+C7*C12+D7*C13+E7*C14
  • 32. Load-Distance With OM Tools Supplement 7-