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16. Location Factor Rating Supplement 7- Labor pool and climate Proximity to suppliers Wage rates Community environment Proximity to customers Shipping modes Air service LOCATION FACTOR .30 .20 .15 .15 .10 .05 .05 WEIGHT 80 100 60 75 65 85 50 Site 1 65 91 95 80 90 92 65 Site 2 90 75 72 80 95 65 90 Site 3 SCORES (0 TO 100) Weighted Score for “Labor pool and climate” for Site 1 = (0.30)(80) = 24
17. Location Factor Rating Supplement 7- 24.00 20.00 9.00 11.25 6.50 4.25 2.50 77.50 Site 1 19.50 18.20 14.25 12.00 9.00 4.60 3.25 80.80 Site 2 27.00 15.00 10.80 12.00 9.50 3.25 4.50 82.05 Site 3 WEIGHTED SCORES Site 3 has the highest factor rating
21. Grid-Map Coordinates Supplement 7- where, x , y = coordinates of new facility at center of gravity x i , y i = coordinates of existing facility i W i = annual weight shipped from facility i n W i i = 1 x i W i i = 1 n x = n W i i = 1 y i W i i = 1 n y = x 1 x 2 x 3 x y 2 y y 1 y 3 1 ( x 1 , y 1 ), W 1 2 ( x 2 , y 2 ), W 2 3 ( x 3 , y 3 ), W 3
22. Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles
23. Center-of-Gravity Technique Supplement 7- x = = = 238 n W i i = 1 x i W i i = 1 n n W i i = 1 y i W i i = 1 n y = = = 444 (200)(75) + (500)(105) + (600)(135) + (300)(60) 75 + 105 + 135 + 60 (200)(75) + (100)(105) + (250)(135) + (500)(60) 75 + 105 + 135 + 60
24. Center-of-Gravity Technique Supplement 7- A B C D x 200 100 250 500 y 200 500 600 300 W 75 105 135 60 y 700 500 600 400 300 200 100 0 x 700 500 600 400 300 200 100 A B C D (135) (105) (75) (60) Miles Miles Center of gravity (238, 444)
28. Load-Distance Calculations Supplement 7- LD = load-distance value l i = load expressed as a weight, number of trips or units being shipped from proposed site and location i d i = distance between proposed site and location i d i = ( x i - x ) 2 + ( y i - y ) 2 ( x,y ) = coordinates of proposed site ( x i , y i ) = coordinates of existing facility where, where, l i d i i = 1 n LD =
29. Load-Distance Supplement 7- Potential Sites Site X Y 1 360 180 2 420 450 3 250 400 Suppliers A B C D X 200 100 250 500 Y 200 500 600 300 Wt 75 105 135 60 Compute distance from each site to each supplier = (200-360) 2 + (200-180) 2 d A = (x A - x 1 ) 2 + (y A - y 1 ) 2 Site 1 = 161.2 = (100-360) 2 + (500-180) 2 d B = (x B - x 1 ) 2 + (y B - y 1 ) 2 = 412.3 d C = 434.2 d D = 184.4
30. Load-Distance Supplement 7- Site 2 d A = 333 d C = 226.7 d B = 323.9 d D = 170 Site 3 d A = 206.2 d C = 200 d B = 180.3 d D = 269.3 Compute load-distance i = 1 n l i d i LD = Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063 Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,789 Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555* * Choose site 3