An electronics firm located near Phoenix, Arizona, is considering where to locate a new phone switch that will link five buildings. The buildings are located at (0,0), (2,6), (10,2), (3,9) and (0,4). The objective is to locate the switch to minimize the cabling required to those five buildings, for which the gravity solution needs to be determined. Concept Introduction: In a gravity modeling, locations are determined that minimizes the cost of transportation of raw materials from the supplier as well as manufactured goods to the market.

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Question 4 (25 Marks) Discuss how developing internal performance measures to track the performance of supplier development, can create efficiency for Pick n Pay.

Answer 1

Question

Chapter 11, Problem 54AP

(a)

Summary Introduction

Interpretation: An electronics firm located near Phoenix, Arizona, is considering where to locate a new phone switch that will link five buildings. The buildings are located at (0,0), (2,6), (10,2), (3,9) and (0,4). The objective is to locate the switch to minimize the cabling required to those five buildings, for which the gravity solution needs to be determined.

Concept Introduction: In a gravity modeling, locations are determined that minimizes the cost of transportation of raw materials from the supplier as well as manufactured goods to the market.

(b)

Summary Introduction

Interpretation: An electronics firm located near Phoenix, Arizona, is considering where to locate a new phone switch that will link five buildings. The buildings are located at (0,0), (2,6), (3,9) and (0,4). The objective is to locate the switch to minimize the cabling required to those five buildings. Assuming a straight line distance measurement and if the problem is solved by hand, the appropriate equations needs to be iterated at least five times, and the optimal location needs to be determined.

Concept Introduction: The simple measurement of distance in a straight line between two facilities is called Euclidean Distance.

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