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MANAGEMENT OF MACHINES AND MATERIALS (MS-5) UNIT 4 FACILITIES LOCATION R Gnyawali
Need for Location Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],4-
Making Location Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Weber’s Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Steps in Location Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Steps in Location Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Community Selection ,[object Object],[object Object],[object Object],4-
Subjective Techniques ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Qualitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Qualitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Equal Weight Method 4- Two refineries sites (A and B) are evaluated under the following factors with 0 to 10 points each factor. Best Site is A
Qualitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Variable Weight Method 4- Two refineries sites (A and B) are evaluated under the following variable points to each factor. Best Site is B
Qualitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Weight-cum-Rating Method 4- Two refineries sites (A and B) are evaluated by assigning following weights and rating points (0-10). Best Site is A
Qualitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Factor Point Rating Method 4- Two refineries sites (A and B) are evaluated by assigning following scales and ratings. Best Site is B
Semi-Quantitative Techniques 4- Composite Measure Method
Composite Measure Method 4-
Composite Measure Method 4- Best Site is B
Break-Even Analysis 4- Cost/Revenue (‘000) Sales Volume (‘000)
Quantitative Techniques ,[object Object],[object Object],[object Object],[object Object],4-
Median Model ,[object Object],[object Object],[object Object],[object Object],[object Object],4- Two Suppliers S1 and S2 Two Distributors D1 and D2 Location of New Plant??? D2 (60,70) D1 (40,60) S1 (10,50) S2 (30,10)
Median Model 4-
Gravity Model ,[object Object],4- Question: What is the best location for a new warehouse/ temporary storage facility considering only distances and quantities sold per month?  X Y A (100,200) D (250,580) Q (790,900) (0,0)
Gravity Model 4- You then compute the new coordinates using the formulas:
Gravity Model 4- You then take the coordinates and place them on the map: 1. Now Calculate the total transportation cost per month. 2. Also solve this problem using Median model and compare the transportation costs.  X Y A (100,200) D (250,580) Q (790,900) (0,0) Z New location of facility Z about (443,627)
Comparison of Service and  Manufacturing Considerations 4- Manufacturing/Distribution Service/Retail Cost Focus Revenue focus Transportation modes/costs Demographics: age,income,etc Energy availability, costs Population/drawing area Labor cost/availability/skills Competition Building/leasing costs Traffic volume/patterns Customer access/parking
Globalization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4- ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Discussion Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],4-
Discussion Questions ,[object Object],[object Object],[object Object],4-
End of Unit 4 UNIT 5: Facilities Layout

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Unit4

  • 1. MANAGEMENT OF MACHINES AND MATERIALS (MS-5) UNIT 4 FACILITIES LOCATION R Gnyawali
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. Equal Weight Method 4- Two refineries sites (A and B) are evaluated under the following factors with 0 to 10 points each factor. Best Site is A
  • 12.
  • 13. Variable Weight Method 4- Two refineries sites (A and B) are evaluated under the following variable points to each factor. Best Site is B
  • 14.
  • 15. Weight-cum-Rating Method 4- Two refineries sites (A and B) are evaluated by assigning following weights and rating points (0-10). Best Site is A
  • 16.
  • 17. Factor Point Rating Method 4- Two refineries sites (A and B) are evaluated by assigning following scales and ratings. Best Site is B
  • 18. Semi-Quantitative Techniques 4- Composite Measure Method
  • 20. Composite Measure Method 4- Best Site is B
  • 21. Break-Even Analysis 4- Cost/Revenue (‘000) Sales Volume (‘000)
  • 22.
  • 23.
  • 25.
  • 26. Gravity Model 4- You then compute the new coordinates using the formulas:
  • 27. Gravity Model 4- You then take the coordinates and place them on the map: 1. Now Calculate the total transportation cost per month. 2. Also solve this problem using Median model and compare the transportation costs. X Y A (100,200) D (250,580) Q (790,900) (0,0) Z New location of facility Z about (443,627)
  • 28. Comparison of Service and Manufacturing Considerations 4- Manufacturing/Distribution Service/Retail Cost Focus Revenue focus Transportation modes/costs Demographics: age,income,etc Energy availability, costs Population/drawing area Labor cost/availability/skills Competition Building/leasing costs Traffic volume/patterns Customer access/parking
  • 29.
  • 30.
  • 31.
  • 32. End of Unit 4 UNIT 5: Facilities Layout