Chapter 13 Heragu

1
Facilities Design
Facilities Design Facilities Design
Facilities Design
S.S. Heragu S.S. Heragu
Decision Sciences and Engineering Decision Sciences and Engineering
Systems Department Systems Department
Rensselaer Polytechnic Institute Rensselaer Polytechnic Institute
Troy NY 12180-3590 Troy NY 12180-3590
2
Chapter 13
Chapter 13
Basic Models
Basic Models
for the
for the
Location Problem
Location Problem
Chapter 13
Chapter 13
Basic Models
Basic Models
for the
for the
Location Problem
Location Problem
3
13.1 Introduction 13.1 Introduction
13.2 13.2 Important Factors in Location Important Factors in Location

Decisions Decisions
13.3 13.3 Techniques for Discrete Space Techniques for Discrete Space
Location Problems Location Problems
-
13.3.1 Qualitative Analysis 13.3.1 Qualitative Analysis
-
13.3.2 Quantitative Analysis 13.3.2 Quantitative Analysis
-
13.3.3 Hybrid Analysis 13.3.3 Hybrid Analysis
Outline
Outline Outline
Outline
4
13.4 13.4 Techniques for Continuous Space Techniques for Continuous Space
Location Problems Location Problems
-
13.4.1 Median Method 13.4.1 Median Method
-
13.4.2 Contour Line Method 13.4.2 Contour Line Method
-
13.4.3 Gravity Method 13.4.3 Gravity Method
-
13.4.4 Weiszfeld Method 13.4.4 Weiszfeld Method
13.5 13.5 Facility Location Case Study Facility Location Case Study
13.6 13.6 Summary Summary
13.7 13.7 Review Questions and Exercises Review Questions and Exercises
13.8 13.8 References References

Outline Cont...
Outline Cont... Outline Cont...
Outline Cont...
5
McDonalds
McDonalds McDonalds
McDonalds
QSCV Philosophy QSCV Philosophy
11,000 restaurants (7,000 in USA, remaining in 11,000 restaurants (7,000 in USA, remaining in
50 countries) 50 countries)
700 seat McDonalds in Pushkin Square, 700 seat McDonalds in Pushkin Square,
Moscow Moscow
$60 million food plant combining a bakery, $60 million food plant combining a bakery,
lettuce plant, meat plant, chicken plant, fish lettuce plant, meat plant, chicken plant, fish
plant and a distribution center, each owned plant and a distribution center, each owned
and operated independently at same location and operated independently at same location
6
Food taste must be the same at any Food taste must be the same at any
McDonald, yet food must be secured locally McDonald, yet food must be secured locally
Strong logistical chain, with no weak links Strong logistical chain, with no weak links
between between
Close monitoring for logistical performance Close monitoring for logistical performance
300 in Australia 300 in Australia
Central distribution since 1974 with the help of Central distribution since 1974 with the help of
F.J. Walker Foods in Sydney F.J. Walker Foods in Sydney
Then distribution centers opened in several Then distribution centers opened in several
cities cities
McDonalds cont...
McDonalds cont... McDonalds cont...
McDonalds cont...
7
McDonalds cont...
McDonalds cont... McDonalds cont...
McDonalds cont...
2000 ingredients, from 48 food plants, 2000 ingredients, from 48 food plants,
shipment of 200 finished products from shipment of 200 finished products from
suppliers to DCs, 6 million cases of food and suppliers to DCs, 6 million cases of food and
paper products plus 500 operating items to paper products plus 500 operating items to
restaurants across Australia restaurants across Australia
Delivery of frozen, dry and chilled foods twice Delivery of frozen, dry and chilled foods twice
a week to each of the 300 restaurants 98% of a week to each of the 300 restaurants 98% of
the time within 15 minutes of promised the time within 15 minutes of promised
delivery time, 99.8% within 2 days of order delivery time, 99.8% within 2 days of order
placement placement
No stockouts, but less inventory No stockouts, but less inventory

8
Introduction
Introduction Introduction
Introduction
Logistics management can be defined as the Logistics management can be defined as the
management of transportation and management of transportation and
distribution of goods. distribution of goods.
-
facility location facility location
-
transportation transportation
-
goods handling and storage. goods handling and storage.
9
Introduction Cont...
Introduction Cont... Introduction Cont...
Some of the objectives in facility location decisions:
(1) It must first be close as possible to raw material (1) It must first be close as possible to raw material
sources and customers; sources and customers;
(2) Skilled labor must be readily available in the (2) Skilled labor must be readily available in the
vicinity of a facilitys location; vicinity of a facilitys location;
(3) Taxes, property insurance, construction (3) Taxes, property insurance, construction and and
land prices must not be too high; land prices must not be too high;
(4) Utilities must be readily available at a (4) Utilities must be readily available at a
reasonable price; reasonable price;
10
(5) Local , state and other government (5) Local , state and other government
regulations must be conducive to business; regulations must be conducive to business;
and and
(6) Business climate must be favorable and the (6) Business climate must be favorable and the
community must have adequate support community must have adequate support
services and facilities such as schools, services and facilities such as schools,
hospitals and libraries, which are important to hospitals and libraries, which are important to
employees and their families. employees and their families.
11
Logistics management problems can be Logistics management problems can be
classified as: classified as:
(1) (1) location problems; location problems;
(2) (2) allocation problems; and allocation problems; and
(3) (3) location-allocation problems. location-allocation problems.
12
List of Factors Affecting
Location Decisions
Location Decisions
Location Decisions
Location Decisions
Proximity to raw materials sources Proximity to raw materials sources
Cost and availability of energy/utilities Cost and availability of energy/utilities
Cost, availability, skill and productivity of Cost, availability, skill and productivity of
labor labor
Government regulations at the federal, state, Government regulations at the federal, state,
country and local levels country and local levels
Taxes at the federal, state, county and local Taxes at the federal, state, county and local
levels levels
Insurance Insurance
Construction costs, land price Construction costs, land price

13
Location Decisions Cont...
Government and political stability Government and political stability
Exchange rate fluctuation Exchange rate fluctuation
Export, import regulations, duties, and tariffs Export, import regulations, duties, and tariffs
Transportation system Transportation system
Technical expertise Technical expertise
Environmental regulations at the federal, Environmental regulations at the federal,

state, county and local levels state, county and local levels
Support services Support services

14
Community services, i.e. schools, hospitals, Community services, i.e. schools, hospitals,
recreation, etc. recreation, etc.
Weather Weather
Proximity to customers Proximity to customers
Business climate Business climate
Competition-related factors Competition-related factors

15
13.2
13.2
Important Factors in Location
Decisions
Decisions
13.2
13.2
Decisions
Decisions
International International
National National
State-wide State-wide
Community-wide Community-wide
16
13.3.1
13.3.1
Qualitative Analysis
13.3.1
13.3.1
Step 1: List all the factors that are important, i.e. Step 1: List all the factors that are important, i.e.
have an impact on the location decision. have an impact on the location decision.
Step 2: Assign appropriate weights (typically Step 2: Assign appropriate weights (typically
between 0 and 1) to each factor based on the between 0 and 1) to each factor based on the
relative importance of each. relative importance of each.
Step 3: Assign a score (typically between 0 and Step 3: Assign a score (typically between 0 and
100) for each location with respect to each 100) for each location with respect to each
factor identified in Step 1. factor identified in Step 1.
17
13.3.1
13.3.1
13.3.1
13.3.1
Step 4: Compute the weighted score for each Step 4: Compute the weighted score for each
factor for each location by multiplying its factor for each location by multiplying its
weight with the corresponding score (which weight with the corresponding score (which
were assigned Steps 2 and 3, respectively) were assigned Steps 2 and 3, respectively)
Step 5: Compute the sum of the weighted scores Step 5: Compute the sum of the weighted scores
for each location and choose a location based for each location and choose a location based
on these scores. on these scores.
18
Example 1:
Example 1: Example 1:
Example 1:
A payroll processing company has recently A payroll processing company has recently
won several major contracts in the midwest won several major contracts in the midwest
region of the U.S. and central Canada and wants region of the U.S. and central Canada and wants
to open a new, large facility to serve these areas. to open a new, large facility to serve these areas.
Since customer service is of utmost Since customer service is of utmost
importance, the company wants to be as near importance, the company wants to be as near
its customers as possible. Preliminary its customers as possible. Preliminary
investigation has shown that Minneapolis, investigation has shown that Minneapolis,
Winnipeg, and Springfield, Ill., would be the Winnipeg, and Springfield, Ill., would be the
three most desirable locations and the payroll three most desirable locations and the payroll
company has to select one of these three. company has to select one of these three.
19
Example 1: Cont...
Example 1: Cont... Example 1: Cont...
Example 1: Cont...
A subsequent thorough investigation of each A subsequent thorough investigation of each
location with respect to eight important factors location with respect to eight important factors
has generated the raw scores and weights listed has generated the raw scores and weights listed
in table 2. Using the location scoring method, in table 2. Using the location scoring method,
determine the best location for the new payroll determine the best location for the new payroll
processing facility. processing facility.
20
Solution:
Solution: Solution:
Solution:
Steps 1, 2, and 3 have already been completed Steps 1, 2, and 3 have already been completed
for us. We now need to compute the weighted for us. We now need to compute the weighted
score for each location-factor pair (Step 4), and score for each location-factor pair (Step 4), and
these weighted scores and determine the these weighted scores and determine the
location based on these scores (Step 5). location based on these scores (Step 5).
21
Table 2. Factors and Weights for
Three Locations
Three Locations
Three Locations
Three Locations
Wt. Wt. Factors Factors Location Location
Minn.Winn.Spring. Minn.Winn.Spring.
.25 .25 Proximity to customers Proximity to customers 95 95 90 90 65 65
.15 .15 Land/construction prices Land/construction prices 60 60 60 60 90 90
.15 .15 Wage rates Wage rates 70 70 45 45 60 60
.10 .10 Property taxes Property taxes 70 70 90 90 70 70
.10 .10 Business taxes Business taxes 80 80 90 90 85 85
.10 .10 Commercial travel Commercial travel 80 80 65 65 75 75
22
Table 2. Cont...
Table 2. Cont... Table 2. Cont...
Table 2. Cont...
Wt. Wt. Factors Factors Location Location
Minn. Minn. Winn. Winn. Spring. Spring.
.08 .08 Insurance costs Insurance costs 70 70 95 95 60 60
.07 .07 Office services Office services 90 90 90 90 80 80
23
Solution: Cont...
Solution: Cont... Solution: Cont...
Solution: Cont...
From the analysis in Table 3, it is clear that From the analysis in Table 3, it is clear that
Minneapolis would be the best location based on Minneapolis would be the best location based on
the subjective information. the subjective information.
24
Table 3. Weighted Scores for the
Three Locations
Three Locations
in Table 2
in Table 2
Three Locations
Three Locations
in Table 2
in Table 2
Weighted Score Location
Minn. Winn. Spring.
Proximity to customers 23.75 22.5 16.25
Land/construction prices 9 9 13.5
Wage rates 10.5 6.75 9
Property taxes 7 9 8.5
Business taxes 8 9 8.5
Minn. Winn. Spring.
Proximity to customers 23.75 22.5 16.25
Land/construction prices 9 9 13.5
Wage rates 10.5 6.75 9
Property taxes 7 9 8.5
Business taxes 8 9 8.5
25
Table 3. Cont...
Table 3. Cont...
Minn. Winn. Spring.
Commercial travel 8 6.5 7.5
Insurance costs 5.6 7.6 4.8
Office services 6.3 6.3 5.6
Minn. Winn. Spring.
Commercial travel 8 6.5 7.5
Insurance costs 5.6 7.6 4.8
Office services 6.3 6.3 5.6
26
Solution: Cont...
Solution: Cont... Solution: Cont...
Solution: Cont...
Of course, as mentioned before, objective Of course, as mentioned before, objective
measures must be brought into consideration measures must be brought into consideration
especially because the weighted scores for especially because the weighted scores for
Minneapolis and Winnipeg are close. Minneapolis and Winnipeg are close.
27
13.3.2
13.3.2
Quantitative
Quantitative
Analysis
Analysis
13.3.2
13.3.2
Quantitative
Quantitative
Analysis
Analysis
28
General Transportation Model
General Transportation Model General Transportation Model
Parameters Parameters
c c
ij ij
: cost of transporting one unit from : cost of transporting one unit from
warehouse i to customer j warehouse i to customer j
a a
i i
: supply capacity at warehouse i : supply capacity at warehouse i
b b
i i
: demand at customer j : demand at customer j
Decision Variables Decision Variables
x x
ij ij
: number of units transported from : number of units transported from
warehouse i to customer j warehouse i to customer j
29
General Transportation Model General Transportation Model
m
i
n
j
ij ij
x c Z
1 1
Cost tion Transporta Total Minimize
i) se at warehou n restrictio (supply m 1,2,..., i ,
Subject to
1

n
j
i ij
a x
j) market at t requiremen (demand n 1,2,..., j ,
1

m
i
j ij
b x
ns) restrictio negativity - (non n 1,2,..., j i, , 0
ij
x
30
Example 2:
Example 2:
Seers Inc. has two manufacturing plants at Seers Inc. has two manufacturing plants at
Albany and Little Rock supplying Canmore Albany and Little Rock supplying Canmore
brand refrigerators to four distribution centers in brand refrigerators to four distribution centers in
Boston, Philadelphia, Galveston and Raleigh. Boston, Philadelphia, Galveston and Raleigh.
Due to an increase in demand of this brand of Due to an increase in demand of this brand of
refrigerators that is expected to last for several refrigerators that is expected to last for several
years into the future, Seers Inc., has decided to years into the future, Seers Inc., has decided to
build another plant in Atlanta or Pittsburgh. The build another plant in Atlanta or Pittsburgh. The
expected demand at the three distribution expected demand at the three distribution
centers and the maximum capacity at the Albany centers and the maximum capacity at the Albany
and Little Rock plants are given in Table 4. and Little Rock plants are given in Table 4.
31
Example 2: Cont...
Example 2: Cont... Example 2: Cont...
Example 2: Cont...
Determine which of the two locations, Atlanta or Determine which of the two locations, Atlanta or
Pittsburgh, is suitable for the new plant. Seers Pittsburgh, is suitable for the new plant. Seers
Inc., wishes to utilize all of the capacity available Inc., wishes to utilize all of the capacity available
at its Albany and Little Rock Locations at its Albany and Little Rock Locations
32
Bost. Bost. Phil. Phil. Galv. Galv. Rale. Rale. Supply Supply
Capacity Capacity
Albany Albany 10 10 15 15 22 22 20 20 250 250
Little Rock Little Rock 19 19 15 15 10 10 9 9 300 300
Atlanta Atlanta 21 21 11 11 13 13 6 6 No limit No limit
Pittsburgh Pittsburgh 17 17 8 8 18 18 12 12 No limit No limit
Demand Demand 200 200 100 100 300 300 280 280
Table 4. Costs, Demand and
Supply Information
Supply Information
Supply Information
Supply Information
33
Table 5. Transportation Model
with Plant at Atlanta
Capacity Capacity
Albany Albany 10 10 15 15 22 22 20 20 250 250
Atlanta Atlanta 21 21 11 11 13 13 6 6 330 330
Demand Demand 200 200 100 100 300 300 280 280 880 880
34
with Plant at Pittsburgh
Capacity Capacity
Albany Albany 10 10 15 15 22 22 20 20 250 250
Pittsburgh Pittsburgh 17 17 8 8 18 18 12 12 330 330
Demand Demand 200 200 100 100 300 300 280 280 880 880
35
Min/Max Location Problem:
Min/Max Location Problem: Min/Max Location Problem:
Min/Max Location Problem:
Location
d
11
d
12
d
21
d
22
d
1n
d
2n
d
m1
d
m2
d
mn
Site
36
13.3.3
13.3.3
Hybrid Analysis
Hybrid Analysis
13.3.3
13.3.3
Hybrid Analysis
Hybrid Analysis
Critical Critical
Objective Objective
Subjective Subjective
37
Hybrid Analysis Cont...
Hybrid Analysis Cont... Hybrid Analysis Cont...
CF CF
ij ij
= 1 if location i satisfies critical factor j, = 1 if location i satisfies critical factor j,
0 otherwise 0 otherwise
OF OF
ij ij
= cost of objective factor j at location i = cost of objective factor j at location i
SF SF
ij ij
= numerical value assigned = numerical value assigned
(on scale of 0-1) (on scale of 0-1)
to subjective factor j for location i to subjective factor j for location i
w w
j j
= weight assigned to subjective factor = weight assigned to subjective factor
(0 (0< < w w < < 1) 1)
38
m i SF w SFM
m i
OF OF
OF OF
OFM
r
j
ij j i
q
j
ij i
q
j
ij i
q
j
ij
q
j
ij i
i
,..., 2 , 1 ,
,..., 2 , 1 ,
min max
max
1
1 1
1 1

1
]
1
1
]
1
1
]
1

m i
CF CF CF CF CFM
p
j
ij ip i i i
,..., 2 , 1
,
1
2 1
39
The location measure LM The location measure LM
i i
for each location is for each location is
then calculated as: then calculated as:
LM LM
i i
= CFM = CFM
i i
[ [
OFM OFM
i i
+ (1- + (1-
) SFM ) SFM
i i
] ]
Where Where
is the weight assigned to the is the weight assigned to the

objective factor. objective factor.
We then choose the location with the highest We then choose the location with the highest
location measure LM location measure LM
i i
40
Example 3:
Example 3:
Mole-Sun Brewing company is evaluating six Mole-Sun Brewing company is evaluating six
candidate locations-Montreal, Plattsburgh, candidate locations-Montreal, Plattsburgh,
Ottawa, Albany, Rochester and Kingston, for Ottawa, Albany, Rochester and Kingston, for
constructing a new brewery. There are two constructing a new brewery. There are two
critical, three objective and four subjective critical, three objective and four subjective
factors that management wishes to incorporate factors that management wishes to incorporate
in its decision-making. These factors are in its decision-making. These factors are
summarized in Table 7. The weights of the summarized in Table 7. The weights of the
subjective factors are also provided in the table. subjective factors are also provided in the table.
Determine the best location if the subjective Determine the best location if the subjective
factors are to be weighted 50 percent more than factors are to be weighted 50 percent more than
the objective factors. the objective factors.
41
Table 7:
Table 7:
Critical, Subjective and Objective
Factor Ratings for six locations for
Mole-Sun Brewing Company, Inc.
Table 7:
Table 7:
42
Factors Factors Location
Albany 0 1
Kingston 1 1
Montreal 1 1
Ottawa 1 0
Plattsburgh 1 1
Rochester 1 1
Location
Albany 0 1
Kingston 1 1
Montreal 1 1
Ottawa 1 0
Plattsburgh 1 1
Rochester 1 1
Critical Critical
Water
Supply
Water
Supply
Tax
Incentives
Tax
Incentives
Table 7. Cont...
Table 7. Cont...
43
Table 7. Cont...
Table 7. Cont...
Albany 185 80 10

Kingston 150 100 15
Montreal 170 90 13
Ottawa 200 100 15
Plattsburgh 140 75 8
Rochester 150 75 11
Location
Albany 185 80 10

Kingston 150 100 15
Montreal 170 90 13
Ottawa 200 100 15
Plattsburgh 140 75 8
Rochester 150 75 11
Critical Critical
Labor
Cost
Labor
Cost
Energy
Cost
Energy
Cost
Objective Objective
Revenue Revenue
44
Location
0.3 0.4
Albany 0.5 0.9
Kingston 0.6 0.7
Montreal 0.4 0.8
Ottawa 0.5 0.4
Plattsburgh 0.9 0.9
Rochester 0.7 0.65
Location
0.3 0.4
Albany 0.5 0.9
Kingston 0.6 0.7
Montreal 0.4 0.8
Ottawa 0.5 0.4
Plattsburgh 0.9 0.9
Rochester 0.7 0.65
Table 7. Cont...
Table 7. Cont...
Factors Factors
Ease of
Transportation
Ease of
Transportation
Community
Attitude
Community
Attitude
45
Table 7. Cont...
Table 7. Cont...
0.25 0.05
Albany 0.6 0.7
Kingston 0.7 0.75
Montreal 0.2 0.8
Ottawa 0.4 0.8
Plattsburgh 0.9 0.55
Rochester 0.4 0.8
Location
0.25 0.05
Albany 0.6 0.7
Kingston 0.7 0.75
Montreal 0.2 0.8
Ottawa 0.4 0.8
Plattsburgh 0.9 0.55
Rochester 0.4 0.8
Support
Services
Support
Services
Labor
Unionization
Labor
Unionization
46
Table 8. Location Analysis of
Mole-Sun Brewing Company,
Inc., Using Hybrid Method
47
Location
Albany -95 0.7 0
Kingston -35 0.67 0.4
Montreal -67 0.53 0.53
Ottawa -85 0.45 0
Plattsburgh -57 0.88 0.68
Rochester -64 0.61 0.56
Location
Albany -95 0.7 0
Kingston -35 0.67 0.4
Montreal -67 0.53 0.53
Ottawa -85 0.45 0
Plattsburgh -57 0.88 0.68
Rochester -64 0.61 0.56
Table 7. Cont...
Table 7. Cont...
Factors Factors
SFM
i
SFM
i
Sum of
Obj. Factors
Sum of
Obj. Factors
Critical Critical Objective Objective LM
i
48
13.4
13.4
Techniques For
Techniques For
Continuous Space Location Problems
13.4
13.4
Techniques For
Techniques For
49
13.4.1 Model for Rectilinear Metric
Problem
Problem
Problem
Problem
Consider the following notation: Consider the following notation:
f f
i i
= Traffic flow between new facility and existing = Traffic flow between new facility and existing
facility i facility i
c c
i i
= Cost of transportation between new facility = Cost of transportation between new facility
and existing facility i per unit and existing facility i per unit
x x
i i
, y , y
i i
= Coordinate points of existing facility i = Coordinate points of existing facility i
50
Model for Rectilinear Metric
Problem (Cont)
Problem (Cont)
Problem (Cont)
Problem (Cont)
Where TC is the total distribution cost Where TC is the total distribution cost
+
m
i
i i i i
y y x x f c
1
] | | | | [ TC
The median location model is then to minimize: The median location model is then to minimize:
51
Problem (Cont)
Problem (Cont)
Problem (Cont)
Problem (Cont)
Since the c Since the c
i i
f f
i i
product is known for each facility, it product is known for each facility, it
can be thought of as a weight w can be thought of as a weight w
i i
corresponding corresponding
to facility i. to facility i.

+
m
i
m
i
i i i i
y y w x x w
1 1
] | | [ ] | | [ TC Minimize
52
Median Method:
Median Method: Median Method:
Median Method:
Step 1: List the existing facilities in non- Step 1: List the existing facilities in non-
decreasing order of the x coordinates. decreasing order of the x coordinates.
Step 2: Find the j Step 2: Find the j
th th
x coordinate in the list at x coordinate in the list at
which the cumulative weight equals or which the cumulative weight equals or
exceeds half the total weight for the first time, exceeds half the total weight for the first time,
i.e., i.e.,

<
j
i
m
i
i
i
j
i
m
i
i
i
w
w
w
w
1 1
1
1 1
2
and
2
53
Median Method (Cont)
Median Method (Cont) Median Method (Cont)
Step 3: List the existing facilities in non- Step 3: List the existing facilities in non-
decreasing order of the y coordinates. decreasing order of the y coordinates.
Step 4: Find the k Step 4: Find the k
th th
y coordinate in the list y coordinate in the list
(created in Step 3) at which the cumulative (created in Step 3) at which the cumulative
weight equals or exceeds half the total weight weight equals or exceeds half the total weight
for the first time, i.e., for the first time, i.e.,

<
k
i
m
i
i
i
k
i
m
i
i
i
w
w
w
w
1 1
1
1 1
2
and
2
54
Median Method (Cont) Median Method (Cont)
Step 4: Cont... The optimal location of the new Step 4: Cont... The optimal location of the new
facility is given by the j facility is given by the j
th th
x coordinate and the x coordinate and the
k k
th th
y coordinate identified in Steps 2 and 4, y coordinate identified in Steps 2 and 4,
respectively. respectively.
55
Notes
Notes Notes
Notes
1. It can be shown that any other x or y 1. It can be shown that any other x or y
coordinate will not be that of the optimal coordinate will not be that of the optimal
locations coordinates locations coordinates
2. The algorithm determines the x and y 2. The algorithm determines the x and y
coordinates of the facilitys optimal location coordinates of the facilitys optimal location
separately separately
3. These coordinates could coincide with the x 3. These coordinates could coincide with the x
and y coordinates of two different existing and y coordinates of two different existing
facilities or possibly one existing facility facilities or possibly one existing facility
56
Example 4:
Example 4:
Two high speed copiers are to be located in the Two high speed copiers are to be located in the
fifth floor of an office complex which houses fifth floor of an office complex which houses
four departments of the Social Security four departments of the Social Security
Administration. Coordinates of the centroid of Administration. Coordinates of the centroid of
each department as well as the average number each department as well as the average number
of trips made per day between each department of trips made per day between each department
and the copiers yet-to-be-determined location and the copiers yet-to-be-determined location
are known and given in Table 9 below. Assume are known and given in Table 9 below. Assume
that travel originates and ends at the centroid of that travel originates and ends at the centroid of
each department. Determine the optimal each department. Determine the optimal
location, i.e., x, y coordinates, for the copiers. location, i.e., x, y coordinates, for the copiers.
57
Table 9. Centroid Coordinates and
Average Number of Trips to
Copiers
Copiers
Copiers
Copiers
58
Table 9.
Table 9. Table 9.
Table 9.
Dept. Dept. Coordinates Coordinates Average number of Average number of
# # x x y y daily trips to copiers daily trips to copiers
1 1 10 10 2 2 6 6
2 2 10 10 10 10 10 10
3 3 8 8 6 6 8 8
4 4 12 12 5 5 4 4
59
Solution:
Solution: Solution:
Solution:
Using the median method, we obtain the Using the median method, we obtain the
following solution: following solution:
Step 1: Step 1:
Dept. x coordinates in Weights Cumulative Dept. x coordinates in Weights Cumulative
# non-decreasing order Weights # non-decreasing order Weights
3 8 8 8
1 10 6 14
2 10 10 24
4 12 4 28
3 8 8 8
1 10 6 14
2 10 10 24
4 12 4 28
60
Solution:
Solution: Solution:
Solution:
Step 2: Since the second x coordinate, namely Step 2: Since the second x coordinate, namely
10, in the above list is where the cumulative 10, in the above list is where the cumulative
weight equals half the total weight of 28/2 = weight equals half the total weight of 28/2 =
14, the optimal x coordinate is 10. 14, the optimal x coordinate is 10.
61
Solution:
Solution: Solution:
Solution:
Step 3: Step 3:
Dept. x coordinates in Weights Cumulative Dept. x coordinates in Weights Cumulative
# non-decreasing order Weights # non-decreasing order Weights
1 2 6 6
4 5 4 10
3 6 8 18
2 10 10 28
1 2 6 6
4 5 4 10
3 6 8 18
2 10 10 28
62
Solution:
Solution: Solution:
Solution:
Step 4: Since the third y coordinates in the Step 4: Since the third y coordinates in the
above list is where the cumulative weight above list is where the cumulative weight
exceeds half the total weight of 28/2 = 14, the exceeds half the total weight of 28/2 = 14, the
optimal coordinate is 6. Thus, the optimal optimal coordinate is 6. Thus, the optimal
coordinates of the new facility are (10, 6). coordinates of the new facility are (10, 6).
63
Equivalent Linear Model for the
Rectilinear Distance, Single-Facility
Location Problem
Location Problem
Location Problem
Location Problem
Parameters Parameters
f f
i i
= Traffic flow between new facility and = Traffic flow between new facility and
existing facility i existing facility i
c c
i i
= Unit transportation cost between new = Unit transportation cost between new
facility and existing facility i facility and existing facility i
x x
i i
, y , y
i i
= Coordinate points of existing facility i = Coordinate points of existing facility i
Decision Variables Decision Variables
x, y= Optimal coordinates of the new facility x, y= Optimal coordinates of the new facility
TC = Total distribution cost TC = Total distribution cost
64
The median location model is then to The median location model is then to

+
m
i
m
i
i i i i
y y w x x w
1 1
] | | [ ] | | [ TC Minimize
Location Problem
Location Problem
Location Problem
Location Problem
65
Since the c Since the c
i i
f f
i i
product is known for each facility, it product is known for each facility, it
can be thought of as a weight w can be thought of as a weight w
i i

corresponding to facility i. The previous corresponding to facility i. The previous
equation can now be rewritten as follows equation can now be rewritten as follows
Location Problem
Location Problem
Location Problem
Location Problem

+
m
i
m
i
i i i i
y y w x x w
1 1
] | | [ ] | | [ TC Minimize
66

Location Problem
Location Problem
Location Problem
Location Problem
i i
i
i i
i
i
i i
i
i i
i
x x x x
x x x x
x x
x x x x
x
x x x x
x
+
+
+

+
>
'
'
>
) (
and
0, or 0 ) ( whether that, observe can We
otherwise 0
0 if ) (
otherwise 0
0 if ) (
Define
67
Location Problem
Location Problem
Location Problem
Location Problem
i i
i
i i
i
i i
y y y y
y y y y
y y
+
+
+

+
) (
and
yields , of definition similar A
68
+ +
+ + +
n
i
i i i i
i
y y x x w
1
) ( Minimize
Model Linear d Transforme
sign in ed unrestrict , ,
n 1,2,..., i 0, , , ,
n 1,2,..., i , - ) (
n 1,2,..., i , - ) (
Subject to
y x
y y x x
y y y y
x x x x
i i i i
i i
i
i i
i

+ +
+
+
Location Problem
Location Problem
Location Problem
Location Problem
69
13.4.2
13.4.2
Contour Line Method
Contour Line Method
13.4.2
13.4.2
Contour Line Method
Contour Line Method
70
Step 1: Draw a vertical line through the x Step 1: Draw a vertical line through the x
coordinate and a horizontal line through the y coordinate and a horizontal line through the y
coordinate of each facility coordinate of each facility
Step 2: Label each vertical line V Step 2: Label each vertical line V
i i
, i=1, 2, ..., p , i=1, 2, ..., p
and horizontal line H and horizontal line H
j j
, j=1, 2, ..., q where V , j=1, 2, ..., q where V
i i
= =
the sum of weights of facilities whose x the sum of weights of facilities whose x
coordinates fall on vertical line i and where H coordinates fall on vertical line i and where H
j j
= =
sum of weights of facilities whose y sum of weights of facilities whose y
coordinates fall on horizontal line j coordinates fall on horizontal line j
Algorithm for Drawing Contour
Lines:
Lines:
Lines:
Lines:
71
m m
i=1 i=1
Step 3: Set i = j = 1; N Step 3: Set i = j = 1; N
0 0
= D = D
0 0
= w = w
i i
Step 4: Set N Step 4: Set N
i i
= N = N
i-1 i-1
+ 2V + 2V
i i
and D and D
j j
= D = D
j-1 j-1
+ 2H + 2H
j j
. .
Increment i = i + 1 and j = j + 1 Increment i = i + 1 and j = j + 1
Step 5: If i Step 5: If i < < p or j p or j < < q, go to Step 4. Otherwise, q, go to Step 4. Otherwise,
set i = j = 0 and determine S set i = j = 0 and determine S
ij ij
, the slope of , the slope of
contour lines through the region bounded by contour lines through the region bounded by
vertical lines i and i + 1 and horizontal line j vertical lines i and i + 1 and horizontal line j
and j + 1 using the equation S and j + 1 using the equation S
ij ij
= -N = -N
i i
/D /D
j j
. .
Increment i = i + 1 and j = j + 1 Increment i = i + 1 and j = j + 1
Lines (Cont)
Lines (Cont)
Lines (Cont)
Lines (Cont)
72
Step 6: If i Step 6: If i < < p or j p or j < < q, go to Step 5. Otherwise q, go to Step 5. Otherwise
select any point (x, y) and draw a contour line select any point (x, y) and draw a contour line
with slope S with slope S
ij ij
in the region [i, j] in which (x, y) in the region [i, j] in which (x, y)
appears so that the line touches the boundary appears so that the line touches the boundary
of this line. From one of the end points of this of this line. From one of the end points of this
line, draw another contour line through the line, draw another contour line through the
adjacent region with the corresponding slope adjacent region with the corresponding slope
Step 7: Repeat this until you get a contour line Step 7: Repeat this until you get a contour line
ending at point (x, y). We now have a region ending at point (x, y). We now have a region
bounded by contour lines with (x, y) on the bounded by contour lines with (x, y) on the
boundary of the region boundary of the region
Lines:
Lines:
Lines:
Lines:
73
1. The number of vertical and horizontal lines 1. The number of vertical and horizontal lines
need not be equal need not be equal
2. The N 2. The N
i i
and D and D
j j
as computed in Steps 3 and 4 as computed in Steps 3 and 4
correspond to the numerator and correspond to the numerator and
denominator, respectively of the slope denominator, respectively of the slope
equation of any contour line through the equation of any contour line through the
region bounded by the vertical lines i and i + 1 region bounded by the vertical lines i and i + 1
and horizontal lines j and j + 1 and horizontal lines j and j + 1
Notes on Algorithm for Drawing
Contour Lines
Contour Lines
Contour Lines
Contour Lines
74
Contour Lines (Cont)
y y w x x w TC
y y x x
i
m
i
i i
m
i
i
+

1 1
, i.e., y), (x, point some at located is
facility new hen the function w objective he Consider t
75
By noting that the V By noting that the V
i i
s and H s and H
j j
s calculated in Step s calculated in Step
2 of the algorithm correspond to the sum of the 2 of the algorithm correspond to the sum of the
weights of facilities whose x, y coordinates are weights of facilities whose x, y coordinates are
equal to the x, y coordinates, respectively of the equal to the x, y coordinates, respectively of the
i i
th th
, j , j
th th
distinct lines and that we have p, q such distinct lines and that we have p, q such
coordinates or lines (p coordinates or lines (p < < m, q m, q < < m), the previous m), the previous
equation can be written as follows equation can be written as follows
y y H x x V TC
i
q
i
i i
p
i
i
+

1 1
76
Suppose that x is between the s Suppose that x is between the s
th th
and s+1 and s+1
th th

(distinct) x coordinates or vertical lines (since (distinct) x coordinates or vertical lines (since
we have drawn vertical lines through these we have drawn vertical lines through these
coordinates in Step 1). Similarly, let y be coordinates in Step 1). Similarly, let y be
between the t between the t
th th
and t+1 and t+1
th th
vertical lines. Then vertical lines. Then
) ( ) ( ) ( ) (
1 1 1 1
y y H y y H x x V x x V TC
i
q
t i
i i
t
i
i i
p
s i
i i
s
i
i
+ + +

+ +
77
Rearranging the variable and constant terms in Rearranging the variable and constant terms in
the above equation, we get the above equation, we get
i
q
t i
i i
t
i
i i
p
s i
i i
s
i
i
t
i
q
t i
i i
s
i
p
s i
i i
y H y H x V x V
y H H x V V TC

+ +
+ +
+ +
1
]
1
+
1
]
1

1 1 1 1
1 1 1 1

78
The last four terms in the previous equation The last four terms in the previous equation
can be substituted by another constant term can be substituted by another constant term
c and the coefficients of x can be rewritten c and the coefficients of x can be rewritten
as follows as follows

+
+
s
i
s
i
i i
s
i
p
s i
i i
V V V V TC
1 1 1 1
Notice that we have only added and subtracted Notice that we have only added and subtracted
this term this term
s
i
i
V
1
79
Since it is clear from Step 2 that Since it is clear from Step 2 that
the coefficient of x can be rewritten as the coefficient of x can be rewritten as
,
1 1

m
i
i
s
i
i
w V

+

1
]
1
+
s
i
m
i
i i
s
i
p
i
i i
s
i
p
s i
i
s
i
i i
w V
V V V V V
1 1
1 1 1 1 1
2
2 2
Similarly, the coefficient of y is Similarly, the coefficient of y is

t
i
m
i
i i
w H
1 1
2
80
c y w H x w V
t
i
m
i
i i
s
i
m
i
i i
+
1
]
1
+
1
]
1

1 1 1 1
2 2 TC Thus,
The N The N
i i
computation in Step 4 is in fact computation in Step 4 is in fact
calculation of the coefficient of x as shown calculation of the coefficient of x as shown
above. Note that N above. Note that N
i i
=N =N
i-1 i-1
+2V +2V
i i
. Making the . Making the
substitution for N substitution for N
i-1 i-1
, we get N , we get N
i i
=N =N
i-2 i-2
+2V +2V
i-1 i-1
+2V +2V
i i
Repeating the same procedure of making Repeating the same procedure of making
substitutions for N substitutions for N
i-2 i-2
, N , N
i-3 i-3
, ..., we get , ..., we get
N N
i i
=N =N
0 0
+2V +2V
1 1
+2V +2V
2 2
+...+2V +...+2V
i-1 i-1
+2V +2V
1 1
= =

+
i
k
k
m
i
i
V w
1 1
2
81
Similarly, it can be verified that Similarly, it can be verified that

+
i
k
k
m
i
i i
H w D
1 1
2
) (
as rewritten be can which

2 2 TC Thus,
1 1 1 1
c TC x
D
N
y
c y D x N
c y w H x w V
t
s
t s
t
i
m
i
i i
s
i
m
i
i i
+
+ +
+
1
]
1
+
1
]
1

82
The above expression for the total cost function The above expression for the total cost function
at x, y or in fact, any other point in the region [s, at x, y or in fact, any other point in the region [s,
t] has the form y= mx + c, where the slope m t] has the form y= mx + c, where the slope m
= -N = -N
s s
/D /D
t t
. This is exactly how the slopes are . This is exactly how the slopes are
computed in Step 5 of the algorithm computed in Step 5 of the algorithm
83
3. The lines V 3. The lines V
0 0
, V , V
p+1 p+1
and H and H
0 0
, H , H
q+1 q+1
are required for are required for
defining the exterior regions [0, j], [p, j], j = defining the exterior regions [0, j], [p, j], j =
1, 2, ..., p, respectively) 1, 2, ..., p, respectively)
4. Once we have determined the slopes of all 4. Once we have determined the slopes of all
regions, the user may choose any point (x, y) regions, the user may choose any point (x, y)
other than a point which minimizes the other than a point which minimizes the
objective function and draw a series of objective function and draw a series of
contour lines in order to get a region which contour lines in order to get a region which
contains points, i.e. facility locations, yielding contains points, i.e. facility locations, yielding
as good or better objective function values as good or better objective function values
than (x, y) than (x, y)
84
Example 5:
Example 5:
Consider Example 4. Suppose that the weight of Consider Example 4. Suppose that the weight of
facility 2 is not 10, but 20. Applying the median facility 2 is not 10, but 20. Applying the median
method, it can be verified that the optimal method, it can be verified that the optimal
location is (10, 10) - the centroid of department 2, location is (10, 10) - the centroid of department 2,
where immovable structures exist. It is now where immovable structures exist. It is now
desired to find a feasible and near-optimal desired to find a feasible and near-optimal
location using the contour line method. location using the contour line method.
85
Solution:
Solution: Solution:
Solution:
The contour line method is illustrated using The contour line method is illustrated using
Figure 1 Figure 1
Step 1: The vertical and horizontal lines V Step 1: The vertical and horizontal lines V
1 1
, V , V
2 2
, ,
V V
2 2
and H and H
1 1
, H , H
2 2
, H , H
2 2
, H , H
4 4
are drawn as shown. In are drawn as shown. In
addition to these lines, we also draw line V addition to these lines, we also draw line V
0 0
, V , V
4 4

and H and H
0 0
, H , H
5 5
so that the exterior regions can be so that the exterior regions can be
identified identified
Step 2: The weights V Step 2: The weights V
1 1
, V , V
2 2
, V , V
2 2
, H , H
1 1
, H , H
2 2
, H , H
2 2
, H , H
4 4
are are
calculated by adding the weights of the points calculated by adding the weights of the points
that fall on the respective lines. Note that for that fall on the respective lines. Note that for
this example, p=3, and q=4 this example, p=3, and q=4
86
Solution:
Solution: Solution:
Solution:
Step 3: Since Step 3: Since
set N
0
= D
0
= -38
Step 4: Set
N
1
= -38 + 2(8) = -22; D
1
= -38 + 2(6) = -26;
N
2
= -22 + 2(26) = 30; D
2
= -26 + 2(4) = -18;
N
3
= 30 + 2(4) = 38; D
3
= -18 + 2(8) = -2;
D
4
= -2 + 2(20) = 38;
(These values are entered at the bottom of each
column and left of each row in figure 1)
set N
0
= D
0
= -38
Step 4: Set
N
1
= -38 + 2(8) = -22; D
1
= -38 + 2(6) = -26;
N
2
= -22 + 2(26) = 30; D
2
= -26 + 2(4) = -18;
N
3
= 30 + 2(4) = 38; D
3
= -18 + 2(8) = -2;
D
4
= -2 + 2(20) = 38;
(These values are entered at the bottom of each
column and left of each row in figure 1)
38
4
1

i
i
w
87
Solution:
Solution: Solution:
Solution:
Step 5: Compute the slope of each region. Step 5: Compute the slope of each region.
S S
00 00
= -(-38/-38) = -1; = -(-38/-38) = -1; S S
14 14
= -(-22/38) = 0.58; = -(-22/38) = 0.58;
S S
01 01
= -(-38/-26) = -1.46; = -(-38/-26) = -1.46; S S
20 20
= -(30/-38) = 0.79; = -(30/-38) = 0.79;
S S
02 02
= -(-38/-18) = -2.11; = -(-38/-18) = -2.11; S S
21 21
= -(30/-26) = 1.15; = -(30/-26) = 1.15;
S S
03 03
= -(-38/-2) = -19; = -(-38/-2) = -19; S S
22 22
= -(30/-18) = 1.67; = -(30/-18) = 1.67;
S S
04 04
= -(-38/38) = 1; = -(-38/38) = 1; S S
23 23
= -(30/-2) = 15; = -(30/-2) = 15;
S S
10 10
= -(-22/-38) = -0.58; = -(-22/-38) = -0.58; S S
24 24
= -(30/38) = -0.79; = -(30/38) = -0.79;
S S
11 11
= -(-22/-26) = -0.85; = -(-22/-26) = -0.85; S S
30 30
= -(38/-38) = 1; = -(38/-38) = 1;
S S
12 12
= -(-22/-18) = -1.22; = -(-22/-18) = -1.22; S S
31 31
= -(38/-26) = 1.46; = -(38/-26) = 1.46;
S S
13 13
= -(-22/-2) = -11; = -(-22/-2) = -11; S S
32 32
= -(38/-18) = 2.11; = -(38/-18) = 2.11;
88
Solution:
Solution: Solution:
Solution:
Step 5: Compute the slope of each region. Step 5: Compute the slope of each region.
S S
33 33
= -(38/-2) = 19; = -(38/-2) = 19;
S S
34 34
= -(38/38) = -1; = -(38/38) = -1;
(The above slope values are shown inside each (The above slope values are shown inside each
region.) region.)
89
Solution:
Solution: Solution:
Solution:
Step 6: When we draw contour lines Step 6: When we draw contour lines
through point (9, 10), we get the through point (9, 10), we get the
region shown in figure 1. region shown in figure 1.
Since the copiers cannot be placed at the Since the copiers cannot be placed at the
(10, 10) location, we drew contour lines (10, 10) location, we drew contour lines
through another nearby point (9, 10). through another nearby point (9, 10).
Locating anywhere possible within this Locating anywhere possible within this
region give us a feasible, near-optimal region give us a feasible, near-optimal
solution. solution.
90
13.4.3
13.4.3
Single-facility Location Problem with
Squared Euclidean Distances
13.4.3
13.4.3
91
La Quinta Motor Inns
La Quinta Motor Inns La Quinta Motor Inns
La Quinta Motor Inns
Moderately priced, oriented towards business Moderately priced, oriented towards business
travelers travelers
Headquartered in San Antonio Texas Headquartered in San Antonio Texas
Site selection - an important decision Site selection - an important decision
Regression Model based on location Regression Model based on location
characteristics classified as: characteristics classified as:
-
Competitive, Demand Generators, Competitive, Demand Generators,
Demographic, Market Awareness, and Demographic, Market Awareness, and
Physical Physical
92
La Quinta Motor Inns (Cont)
La Quinta Motor Inns (Cont) La Quinta Motor Inns (Cont)
La Quinta Motor Inns (Cont)
Major Profitability Factors - Market awareness, Major Profitability Factors - Market awareness,
hotel space, local population, low unemployment, hotel space, local population, low unemployment,
accessibility to downtown office space, traffic accessibility to downtown office space, traffic
count, college students, presence of military count, college students, presence of military
base, median income, competitive rates base, median income, competitive rates
93
Gravity Method:
Gravity Method: Gravity Method:
Gravity Method:
As before, we substitute w As before, we substitute w
i
= f = f
i i
c c
i i
, i = 1, 2, ..., m , i = 1, 2, ..., m
and rewrite the objective function as and rewrite the objective function as
[ ]
+
m
i
i i i i
y y x x f c
1
2 2
) ( ) ( TC Minimize
2
1 1
2
) ( ) ( TC Minimize y y w x x w
i
m
i
i
m
i
i i
+

The cost function is The cost function is
94
Since the objective function can be shown to be Since the objective function can be shown to be
convex, partially differentiating TC with respect convex, partially differentiating TC with respect
to x and y, setting the resulting two equations to to x and y, setting the resulting two equations to
0 and solving for x, y provides the optimal 0 and solving for x, y provides the optimal
location of the new facility location of the new facility
Gravity Method (Cont)
Gravity Method (Cont) Gravity Method (Cont)

m
1 i
m
1 i
m
1 i
m
1 i

0 2 2
x
TC
i i i
i i i
w x w x
x w x w
95
Similarly, Similarly,
Gravity Method (Cont) Gravity Method (Cont)

m
1 i
m
1 i
m
1 i
m
1 i

0 2 2
y
TC
i i i
i i i
w y w y
y w y w
Thus, the optimal locations x and y are simply the Thus, the optimal locations x and y are simply the
weighted averages of the x and y coordinates of the weighted averages of the x and y coordinates of the
existing facilities existing facilities
96
Example 6:
Example 6:
Consider Example 4. Suppose the distance Consider Example 4. Suppose the distance
metric to be used is squared Euclidean. metric to be used is squared Euclidean.
Determine the optimal location of the new facility Determine the optimal location of the new facility
using the gravity method. using the gravity method.
97
Solution - Table 10
Solution - Table 10 Solution - Table 10
Solution - Table 10
Department i x
i
y
i
w
i
w
i
x
i
w
i
y
i
Department i x
i
y
i
w
i
w
i
x
i
w
i
y
i
1 10 2 6 60 12
2 10 10 10 100 100
3 8 6 8 64 48
4 12 5 4 48 20
1 10 2 6 60 12
2 10 10 10 100 100
3 8 6 8 64 48
4 12 5 4 48 20
Total 28 272 180 Total 28 272 180
4 . 6 28 180 and 7 . 9 28 272
that conclude we 10, table From
y x
98
Example 6. Cont...
Example 6. Cont... Example 6. Cont...
Example 6. Cont...
If this location is not feasible, we only need to If this location is not feasible, we only need to
find another point which has the nearest find another point which has the nearest
Euclidean distance to (9.7, 6.4) and is a feasible Euclidean distance to (9.7, 6.4) and is a feasible
location for the new facility and locate the location for the new facility and locate the
copiers there copiers there
99
13.4.4
13.4.4
Weiszfeld
Weiszfeld
Method
Method
13.4.4
13.4.4
Weiszfeld
Weiszfeld
Method
Method
100
Weiszfeld Method:
Weiszfeld Method: Weiszfeld Method:
Weiszfeld Method:
As before, substituting w As before, substituting w
i i
=c =c
i i
f f
i i
and taking the and taking the
derivative of TC with respect to x and y yields derivative of TC with respect to x and y yields
) y (y ) x (x f c TC Minimize
m
1 i
i i i i
2 2
+
The objective function for the single facility location The objective function for the single facility location
problem with Euclidean distance can be written as: problem with Euclidean distance can be written as:
101
Weiszfeld Method:
Weiszfeld Method:
[ ]
m
1 i
i i
i
m
1 i
i i
i i
m
1 i
i i
i i
0
) y (y ) x (x
x w

) y (y ) x (x
x w

) y (y ) x (x
) x 2(x w
2
1

x
TC
2 2
2 2
2 2
102
Weiszfeld Method:
Weiszfeld Method:

) y (y ) x (x
w
) y (y ) x (x
x w
x
m
1 i
i i
i
m
1 i
i i
i i
2 2
2 2
+
+

103
Weiszfeld Method:
Weiszfeld Method:
[ ]
m
1 i
i i
i
m
1 i
i i
i i
m
1 i
i i
i i
0
) y (y ) x (x
y w

) y (y ) x (x
y w

) y (y ) x (x
) y 2(y w
2
1

y
TC
2 2
2 2
2 2
104
Weiszfeld Method:
Weiszfeld Method:
+
+

m
1 i
i i
i
m
1 i
i i
i i
2 2
2 2
) y (y ) x (x
w
) y (y ) x (x
y w
y
105
Weiszfeld Method:
Weiszfeld Method:
Step 0: Set iteration counter k = 1; Step 0: Set iteration counter k = 1;

m
m
m
m
1 i
i
1 i
i i
k
1 i
i
1 i
i i
k
w
y w
y ;
w
x w
x
106
Weiszfeld Method:
Weiszfeld Method:
Step 1: Set Step 1: Set

) y (y ) x (x
w
) y (y ) x (x
x w
x
m
1 i
k
i
k
i
i
m
1 i
k
i
k
i
i i
1 k
2 2
2 2
+
+
+

107

) y (y ) x (x
w
) y (y ) x (x
x w
x
m
1 i
k
i
k
i
i
m
1 i
k
i
k
i
i i
1 k
2 2
2 2
+
+
+

Weiszfeld Method:
Weiszfeld Method:
Step 2: If x Step 2: If x
k+1 k+1
= x = x
k k
and y and y
k+1 k+1
= y = y
k k
, Stop. , Stop.
Otherwise, set k = k + 1 and go to Step 1 Otherwise, set k = k + 1 and go to Step 1
108
Example 7:
Example 7:
Consider Example 5. Assuming the distance Consider Example 5. Assuming the distance
metric to be used is Euclidean, determine the metric to be used is Euclidean, determine the
optimal location of the new facility using the optimal location of the new facility using the
Weiszfeld method. Data for this problem is Weiszfeld method. Data for this problem is
shown in Table 11. shown in Table 11.
109
Table 11.
Table 11.
Coordinates and weights for
4 departments
4 departments
Table 11.
Table 11.
4 departments
4 departments
110
Table 11:
Table 11: Table 11:
Table 11:
Departments # x
i
y
i
w
i
Departments # x
i
y
i
w
i
1 10 2 6
2 10 10 20
3 8 6 8
4 12 5 4
1 10 2 6
2 10 10 20
3 8 6 8
4 12 5 4
111
Solution:
Solution: Solution:
Solution:
Using the gravity method, the initial seed can be Using the gravity method, the initial seed can be
shown to be (9.8, 7.4). With this as the starting shown to be (9.8, 7.4). With this as the starting
solution, we can apply Step 1 of the Weiszfeld solution, we can apply Step 1 of the Weiszfeld
method repeatedly until we find that two method repeatedly until we find that two
consecutive x, y values are equal. consecutive x, y values are equal.

Chapter 13 Heragu

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Chapter 13 Heragu

Hochgeladen von

Copyright:

Verfügbare Formate

1

13.1 Introduction 13.1 Introduction

13.2 13.2 Important Factors in Location Important Factors in Location

13.6 13.6 Summary Summary

13.8 13.8 References References

QSCV Philosophy QSCV Philosophy

300 in Australia 300 in Australia

No stockouts, but less inventory No stockouts, but less inventory

Proximity to raw materials sources Proximity to raw materials sources

Cost and availability of energy/utilities Cost and availability of energy/utilities

Construction costs, land price Construction costs, land price

Government and political stability Government and political stability

Exchange rate fluctuation Exchange rate fluctuation

Transportation system Transportation system

Technical expertise Technical expertise

Environmental regulations at the federal, Environmental regulations at the federal,

Support services Support services

Proximity to customers Proximity to customers

Business climate Business climate

Competition-related factors Competition-related factors

is the weight assigned to the is the weight assigned to the

Das könnte Ihnen auch gefallen