Logistics and Location Analysis 1 Logistics and Location

Logistics and Location Analysis 1

Logistics and Location Analysis Logistics “The art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities” 2

Logistics and Location Analysis Modes of Transportation 3

Logistics and Location Analysis Location & Distribution Factor-rating system Transportation method of linear programming Centroid method 4

Example: Determine the coordinates of the new facility using the centroid method given four destinations to serve. The coordinates of the destinations, as well as the weekly amount of units to be shipped to, are present in the following table : 5 Destination Location Weekly Quantity A (2, 2) 800 B (3, 5) 900 C (5, 4) 200 D (8, 5) 100

Solution The coordinates for the centroid are (3. 05, 3. 7) 6

Theoretical Approach: Rectilinear Distance Measures of Distance • Euclidean Distance • Straight line distance • Rectilinear Distance • Aka. “Metropolitan” distance 7

Rectilinear Distance Locating a new facility among n existing facilities for rectilinear distance Optimal solution is the median value of the existing facilities 8

Example: Suppose the existing facilities have four locations at the following coordinates: (3, 3), (6, 9), (12, 8), (12, 10) Assume that on average, the material shipment per day from the existing facilities to the new facility (to be constructed) are 2, 4, 3, and 1 respectively. Where should the new facility be located to minimize the total distance travel? 9

Solution To find median, sort x- and y- coordinates from low to high x: 3 3 6 6 12 12 y: 3 3 8 8 8 9 9 10 Solution: x = 6, y = any value in the closed interval [8, 9] e. g. (6, 9) 10