Eve started a pizza business three years ago using the kitchen in her house. Customers call to order their pizza and Eve will deliver. Her business has grown so much that she hired four employees. Given the rate of growth, Eve decided to move her operations out of her kitchen and build a separate kitchen for her pizza business. She would like to choose a location that minimizes the total (or average) travel distance to deliver pizza to customers. From historical records, Eve has decided that her customers are unevenly distributed throughout her service area. To make her problem more manageable, she grouped the customers in the same general area into six regions. Using this information and other relevant information obtained from Eve, demonstrate how the centre of gravity location technique can be used to determine the best location that will minimize total travel distance
Eve started a pizza business three years ago using the kitchen in her house. Customers call to order their pizza and Eve will deliver. Her business has grown so much that she hired four employees. Given the rate of growth, Eve decided to move her operations out of her kitchen and build a separate kitchen for her pizza business. She would like to choose a location that minimizes the total (or average) travel distance to deliver pizza to customers. From historical records, Eve has decided that her customers are unevenly distributed throughout her service area. To make her problem more manageable, she grouped the customers in the same general area into six regions. Using this information and other relevant information obtained from Eve, demonstrate how the centre of gravity location technique can be used to determine the best location that will minimize total travel distance
b. Using a numerical example, demonstrate how break-even analysis (graphical approach) can be used to determine the best of three locations
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