Professional Documents
Culture Documents
Community considerations:
Local community’s attitude toward the facility
(e.g.: prisons)
Site considerations:
Local zoning & taxes, access to utilities, etc.
Quality-of-life issues:
Climate, cultural attractions, commuting time,
etc.
Other considerations:
Options for future expansion, local
competition, etc.
4
Objectives
To expand existing facility
To add new location while retaining
existing one.
Shut down at one location and move to
another
5
Cx =
∑d V ix i
Cy =
∑d V iy i
∑V i ∑V i
Where:
Cx = X coordinate of centroid
Cy = X coordinate of centroid
dix = X coordinate of the ith location
diy = Y coordinate of the ith location
Vi = volume of goods moved to or from ith
location
Plant Location Methodology: Example
10
of Centroid Method
Centroid method example
Several automobile showrooms are
located according to the following
grid which represents coordinate
locations for each showroom
S ho wro o m No o f Z-Mo b ile s
Y s o ld p e r mo nth
Q
(790,900)
A 1250
D
(250,580)
D 1900
A
(100,200)
(0,0) X Q 2300
(0,0) X
Q 2300
12
You then take the coordinates and place them on the map:
Y
S ho wro o m No o f Z-Mo b ile s
Q New s o ld p e r mo nth
(790,900)
location
Z
D
(250,580) of facility A 1250
Z about
A D 1900
(100,200) (443,627)
(0,0) X Q 2300