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Of all the pieces of the planning puzzle, facility location is the most strategic
and critical. Once you build a new manufacturing facility, you have made a
substantial investment of time, resources, and capital that can’t be changed for a
long time. Selecting the wrong location can be disastrous. There are many factors
that can determine where an organization will locate its facilities. For any given
situation, some factors become more important than others in how facility location
affects an organization’s performance. For example, when a company needs to open
a new manufacturing facility, there are several factors that determine which location
reduces the company’s operating costs while providing a great level of
responsiveness to the market. In order to minimize transportation costs, the centre of
gravity method may be used to locate a facility that serves several areas such as a
warehouse or distribution centre. This method uses an (X-Y) coordinate system to
cover the geographical map of the areas under study, and identifies the x and y
coordinates for the location of the new facility based on the coordinates of the other
facilities and the quantity of demand for each area (facility).
OBJECTIVE
Process Flow
Start
Draw a new layout for the new point of Postal Service location
Make report
End
Methodology
In this task, we must discuss the best of data collections for our selected
situation that is Postal Service in KKTM Kuantan. In the regardings task we should
solve the problem arise of the current location to find an optimum location as to
increase the demand and the comfortability for users especially girl students that
frequently going to the Postal Service in a week about 23 students while the lowest
frequency is Dkn students with a total of 3 students that using the Postal Service.
First of all, we choose who always uses the Postal Service to facilitate us in placing a
new location to give pleasure to users. After choosing who always uses the Postal
Service we make a measurements from each of the location using measuring tape
and record each measured distance. The eight locations that we measure are boys
hostel, girls hostel, general study, Dkq’s Department, Dka’s Department, Dkp’s
Department, Dkn’s Department, and Dki’s Department. After getting the data we
show the data to the lecturer to make sure that our data is correct. After getting the
lecturer's approval, we started our calculations to find a suitable center of gravity for
the new location using the minisum location model, minimax location model, and
center of gravity formula. After that, we draw the new layout using the best data
collections and a new point of locations for the Postal Service. Lastly, after
everything is finished we prepare our report to be submit and we make a slide to
present to the lecturer about the task given.
DATA COLLECTIONS AND CALCULATION
Data Collection
200000
DKP DKA
150000
DKN DKQ
DKI
100000 General studies
50000
0
-150000 -100000 -50000 0 50000 100000 150000 200000 250000
-50000
girls hostel
-100000 boys hostel
-150000
1) CENTURE OF GRAVITY
Data is collected
Coordinate x=
∑ dix Qi
∑ Qi
5840000
Coordinate x=
59
Coordinate x=98983
Coordinate y =
∑ diy Qi
∑ Qi
625159
Coordinate y =
59
Coordinate y =10596
CENTURE OF GRAVITY
200000
DKP DKA
150000
DKN DKQ
DKI
100000 General studies
50000
GENTURE OF GRAVITY
0
-150000 -100000 -50000 0 50000 100000 150000 200000 250000
-50000
girls hostel
-100000 boys hostel
-150000
2) MINISUM LOCATION MODEL
X – coordinate
No Location Coordinate ai Weight wi Cumulative weight
1 DKI -90000 6 6
2 DKN --50000 3 9
3 DKP -40000 7 16
4 DKA 40000 4 20
5 DKQ 50000 4 24
6 General studies 100000 5 29
7 Boys hostel 160000 7 36
8 Girls hostel 210000 23 59
Y – coordinate
No Location Coordinate bi Weight wi Cumulative weight
1 Boys hostel -121666 7 7
2 Girls hostel -103712 23 30
3 General studies 85130 5 35
4 DKI 112037 6 41
5 DKQ 149877 4 45
6 DKN 149877 3 48
7 DKA 155926 4 52
8 DKP 155926 7 59
median=
∑ cumulative weight
2
59
median=
2
median=29.5
The New Minisum Point = (100000 / -103712)
m m
Minimize f ( x )=∑ w i|x−ai|+ ∑ w i| y−bi|
i=1 i=1
Minimize f ( x )=5151313 m
MINISUM
200000
DKP DKA
150000
DKN DKQ
DKI
100000 General studies
50000
0
-150000 -100000 -50000 0 50000 100000 150000 200000 250000
-50000
-150000
3) MINIMAX LOCATION MODEL
c 5 216907
¿ =
2 2
= 108454
MINIMAX X1Y1
200000
DKP DKA
150000
DKN DKQ
DKI MINIMAX X1Y1
50000
0
-150000 -100000 -50000 0 50000 100000 150000 200000 250000
-50000
girls hostel
-100000 boys hostel
-150000
MINIMAX X2Y2
3500000
MINIMAX X2Y2
3000000
2500000
2000000
1500000
1000000
500000
DKP DKA
DKI General studies
boysgirls hostel
hostel
DKN 0 DKQ
-1200000 -1000000 -800000 -600000 -400000 -200000 0 200000 400000
-500000
All the point
3500000
Minimax x2y2
3000000
2500000
2000000
1500000
1000000
500000
DKP DKA
DKI 112037
General studies
10596
-103712 hostel
boysgirls
hostel
DKN 0 DKQ
-1200000 -1000000 -800000 -600000 -400000 -200000 0 200000 400000
-500000
ADVANTAGES
In our new design layout proves the advantage that improved efficiency
and reduction in cycle time for the users. In the previous layout some of the
locations are very far from the postal service so in doing this case study we
get the advantage to relocate the midpoint to give pleasure to all the users.
With this new design layout all of the locations get the same distance to go to
the postal service. The center of gravity technique is used in determining the
location of a facility which will either reduce travel time or lower shipping
costs. Distribution cost is seen as a linear function of the distance and
quantity shipped. The Center of Gravity Method involves the use of a visual
map and a coordinate system; the coordinate points being treated as the set
of numerical values when calculating averages. If the quantities shipped to
each location are equal, the center of gravity is found by taking the averages
of the x and y coordinates; if the quantities shipped to each location are
different, a weighted average must be applied.
CONCLUSION