This document discusses Associated Motorways (Pvt.) Ltd (AMW), the sole distributor of Suzuki vehicles and parts in Sri Lanka. It notes that AMW currently has one warehouse located in Wattala and 20 showrooms around the country. This results in high transportation costs to distribute vehicles from the port to the warehouse and then to showrooms outside of Colombo. The document applies a facility location model to determine an optimal location for a new warehouse, identifying an area between Morogollagama and Bogoda Rd. Analysis shows locating a new warehouse in Daladagama could save AMW over Rs. 100,000 per month in transportation costs.

1. Associated Motorways
(Pvt.) Ltd.

2. Content
Associated Motorways (Pvt.) Ltd
AMW- SUZUKI offers 20 different and unique models
Showrooms location of AMW-SUZUKI
When selecting a location
What is facility.?
What is facility location.?
Issues related to facility location
Distance between Wattala (existing warehouse) & other existing showrooms
Application Of Theory
Analysis
Other important opportunities for locate new warehouse in Daladagama.
Conclusion

3. Associated Motorways (Pvt.) Ltd
Popularly known as AMW, acquire the SUZUKI MARUTI agency in the year 1991 and Suzuki
agency in the year 2005, as the sole distributor of SUZUKI vehicles and genuine parts in the
country.
At present SUZUKI have 20 strategically located branches in the country covering all major
cities.
Their main showroom in Borella. Apart from these exclusive Suzuki showrooms, SUZUKI also
has 38 authorized service and spares dealers covering all major cities in the country.

4. AMW- SUZUKI offers 20 different and unique models
Alto
Alto K10
Stingray
Omni
Celerio
Swift
Swift DZire
Ertiga
Ciaz
Baleno
Swift Sport
Vitara

5. Showrooms location of AMW-SUZUKI
Ampara
Anuradapura
Awissawella
Badulla
Baticaloa
Embilipitiya
Galle
Gampaha
Jaffna
Kalutara
Kandy
Kiribathgoda
Kiribathgoda
Kuliyapitiya
Kurunagala
Matara
Negambo
Nugegoda
Rathnapura

6. When selecting a location,
They have consider,
Infrastructure facilities
Number of showrooms that near to the new location
Customer demand in new area
Transportation cost new warehouse to showrooms

7. What is facility.?
Permanent, semi-permanent, or temporary commercial or industry
property such as a building, plant, or structure, built, established, or
installed for the performance of one or more specific activities or
functions.

8. What is facility location.?
Is a mathematical modeling and solution of problems concerned
with the optimal placement of facilities to minimize transportation
costs while considering factors like avoiding placing hazardous
materials near housing, and competitors' facilities.

9. Issues related to facility location
AMW SUZUKI has 20 showrooms around the country. But they have only 1 warehouse. It is
located at wattala.
Therefore they incur huge cost to transport vehicles from Hambanthota Port to Wattala
warehouse and then Wattala warehouse to showrooms which located in outside the Colombo
district.
If they locate new warehouse in outside the Colombo district, they can reduce their
transportation cost.

10. Distancebetween Wattala (existingwarehouse)& otherexistingshowrooms
Showrooms Distance(Km)
Ampara 306
Anuradhapura 196
Awissawella 45
Baticaloa 315
Badulla 221
Embilipitiya 218
Galle 126
Gampaha 23
Jaffna 391
Kalutara 57
Kandy 110
Kiribathgoda 6
Kuliyapitiya 78
Kurunagala 101
Matara 155
Negambo 7
Nugegoda 15
Rathnapura 95
Borella(head office) 7

11. Application Of Theory
Issue – Only one warehouse which is located in Wattala.
Result – High distribution cost.(showrooms located outside the Colombo district)
Objective – To minimize the distance by locating a new warehouse in out of Colombo area.
Model – Used min max model

12. Showrooms X Y
Ampara 81.689644 7.305059
Anuradhapura 80.398763 8.318354
Awissawella 80.198815 6.958806
Baticaloa 81.675747 7.733254
Badulla 81.055412 6.99271
Embilipitiya 80.844182 6.316746
Galle 80.21203 6.045352
Gampaha 80.014124 7.087911
Jaffna 80.025355 9.665184
Kalutara 79.963517 6.587106
Kandy 80.632647 7.289606
Kiribathgoda 79.927016 6.977785
Kuliyapitiya 80.042222 7.469981
Kurunagala 80.353316 7.474151
Matara 80.555725 5.956089
Negambo 79.870267 7.202046
Nugegoda 79.894931 6.865875
Rathnapura 80.386986 6.708183
Borella(Head
office)
79.877695 6.910151
X and Y coordination of AMW SUZUKI showrooms

13. C1=Min (ai+bi)
=86.25738
C2=Max (ai+bi)
=89.69054
C3=Min (-ai+bi)
=-74.5996
C4=Max (-ai+bi)
=-70.3602
C5=max {(c2-c1), (C4-C3)}
=4.239465
Calculation
Identification of the location
P1 = {1/2*(C1-C3), ½*(c1+c3+c5)}
=80.42851 , 7.948605
P2 = {1/2*(c2-c4), ½*(c2+c4-c5)}
=80.02536 , 7.545452

14. Optimal Range for Locating the warehouse
0
2
4
6
8
10
12
79.5 80 80.5 81 81.5 82
p1
p2

15. New locations
Morogollaga
ma
80.42851 7.948605
Bogoda Rd. 80.02536 7.545452

16. It is better to locate the warehouse between Morogollagama and Bogoda Rd.
We select Daladagama for
locate the new warehouse.

17. Analysis
Distance and Transportation Cost per month between Wattala (existing warehouse) to
Showrooms
Showroom Distance(Km) Transportation
Cost per
month(Rs.)
Ampara 306 88500
Anuradhapura 196 61000
Kuliyapitiya 78 31500
Kurunagala 101 37250
Baticaloa 315 90750
Jaffna 391 109750
Total 418750
 Total transportation cost per
month=2(6000+125x)
 X-Distance between warehouse
to showrooms

18. Distance Transportation Cost per month between Daladagama (New warehouse) to
Showrooms.
Showroom Distance (Km) Transportation
Cost per
month(Rs.)
Ampara 263 77750
Anuradhapura 67 28750
Kuliyapitiya 54.5 25625
Kurunagala 48.9 24225
Baticaloa 223 66750
Jaffna 263 77750
Total 300850
If AMW SUZUKI locate new warehouse in Daladagama,
AMW SUZUKI could save Rs.117900 per month (418750-
300850).

19. Other important opportunities for locate new warehouse in Daladagama.
Those are developing areas in the country, therefore people tend to demand new vehicles for
use them.
It is crowded area and closed to the main cities.
Staff members of new warehouse can be reached at minimum transportation cost due to
developed infrastructure and urbanization.
They can recruit employees at minimum wage rate.

20. Conclusion
AMW SUZUKI is the sole distributor of SUZUKI vehicles and genuine parts in the country.
Main objective is to decide an optimal location for warehouse out of Colombo area to reduce
the distance between other showrooms (outside the Colombo area).
We used min max method to find an optimal location for a new warehouse.
Solution found for new location is between Morogollagama and Bogoda Rd.
They can invest to locate their new warehouse in Daladagama which located in between
Morogollagama & Bogoda Rd line.

21. Thank you…