OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 6, Problem 3PA
Summary Introduction
Interpretation: The X and Y coordinate of a facility needs to determine on the basis of given information using the Centre of Gravity method.
Concept Introduction: The Center of Gravity method is useful in determining suitable facility locations by keeping in mind the market demand and transportation costs.
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A highway contractor needs to locate a single supply point to provide road building materials to three projects. The volume and the map coordinates for the three projects are shown below. Find the ideal location (coordinates) of the supply poiunt using Center of Gravity Method.
Determine the suitable location of a distribution centre with the below data, minimizing the transportation dollars spent on managing inbound and outbound shipments.
Plot the location of the Vendors, Customers and the location of the new DC in a chart
Vendor
V1
V2
V3
V4
Customer
C1
C2
C3
C4
Rate $ per
Ton Mile
$
$
$
$
4.75
3.75
3.15
4.75
Rate $ per
Ton Mile
$
$
$
$
3.50
3.75
4.25
5.00
Volume in
Tons
1000
1000
1600
1400
Volume in
Tons
760
640
800
500
Vendor Location Coordinates (miles)
Horizontal
525
600
412.5
300
Vertical
300
750
750
630
Customer Location Coordinates(miles)
Vertical
450
900
1050
975
Horizontal
900
900
825
1050
Determine the center of gravity for the destinations shown on the followingmap. Monthly shipments will be the quantities listed in the table.
Chapter 6 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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- Suppose that you are an engineer tasked with finding a new location for your distribution center (let's say you work as an industrial engineer at a cosmetics company). You have a good idea of who your customers are and how many tons of cosmetics you must ship per week. Using your company headquarters as the origin, you plot out the following table: Customer x-location (miles) y-location (miles) Quantity (tons/week) JC Penney 10 280 3 BB&B 70 180 7 Target 80 160 4 Bath&Body Works 170 20 5 Walmart…arrow_forwardCan you please answer the second chart?arrow_forwardDiscuss the role of logistics variables in the decision as to where to locate a plant ordistribution center.arrow_forward
- There are four basic resources available, also known as production factors, which can be used by a busines such as Afri-Fast to deliver goods and services. Identify the four (4) factors or production, give a theoretical description of each, and provide a suitable practical example of how each an be used ina logistics service organisation such as Afri-Fast.arrow_forwardSupply Chain Logistic Networks Relative to supply chain location decisions, there are a number of dominant factors to consider when choosing a facility location. In regards to either a manufacturing OR a service approach, what are the three factors to be considered as the most important in facility location or a site selection process.arrow_forwardWilliams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one ot two cities – New Orleans and Houston. Table below provides pertinent production and distribution costs as well as plant capacities and distribution demands. Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm? From Plants To Distribution centers Normal production Unit production cost Los Angeles New York Existing plants Atlanta Tulsa $8 $4 $5 $7 600 900 $6 $5 Proposed locations New Orleans Houston $5 $4 $6 $6a 500 500 $4 (anticipated) $3 (anticipated) Forecast demand 800 1,200 2,000 a – Indicates distribution cost (shipping, handling, storage) will be $6 per…arrow_forward
- Given the dataset of a supply network in the following table: Location X co-ordinates Y co-ordinates Supply or demand Site 1 61 44 40 Site 2 12 16 Site 3 38 26 76 Site 4 6 22 72 63 22 54 Supplier 1 Supplier 2 26 8 77 18 62 37 Supplier 3 Supplier 4 8 65 43 Supplier 5 43 36 26 Supplier 6 8 41 68 a. Calculate the Euclidean distance from every potential site to every supplier b. Calculate the load-distance value for every potential site. c. Conclude on the best site with the lowest load-distance value.arrow_forwardUsing the information about customer vehicle traffic to and from a proposed new sports stadium (not built yet), find the best location for the stadium that minimizes total distance travelled using the center-of-gravity method. Zip Code Location Options 2 3 4 Coordinates of Location X 2 9 12 13 y 4 5 6 12 Vehicles per Stadium Event 4,300 4,700 1,100 2,000 Use the center-of-gravity method to determine an ideal location for a service center. Round your answers to two decimal places. Cx: Cy:arrow_forwardAnalyze logistics-driven location decisions.arrow_forward
- Which of the following technique emphasizes transportation cost in the determination of facility location?(a) Location rating factor technique(b) Transportation technique(c) Centre-of-gravity technique(d) Both (b) and (c)arrow_forwardThe Thor International Company operates four factories that ship products to five warehouses. The shipping costs, requirements, and capacities are shown in Figure. Use the transportation method to find the shipping schedule that minimizes shipping cost.arrow_forwardWhat major issues should be considered when determining a retail site locatiarrow_forward
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