Page 15 - Facility Management (All Chapter)

FACILITIES LOCATION

a. Location of markets

b. Volume of goods shipped to those markets
c. Shipping cost (or distance)

3. Place existing locations on a coordinate grid
a. Grid origin and scale is arbitrary
b. Maintain relative distances
4. Calculate X and Y coordinates for ‘center of gravity’
a. Assumes cost is directly proportional to distance and volume shipped

x x - - c co oo or rd di in na at te e = = i i∑ ∑d d i ix xQ Q i i
i i∑ ∑Q Q i i

Formula 2.3

y y - - c co oo or rd di in na at te e = = i i∑ ∑d d i iy yQ Q i i
i i∑ ∑Q Q i i

Formula 2.4

where dix = x-coordinate of location i
diy = y-coordinate of location i
Qi = Quantity of goods moved to or from location i

Example 2.3:
Find the centre of gravity for the figure 2.3

BPLK 15 DMQ 40392