Gravity Location Model

Ghani Glass (Pvt.) Ltd. is a manufacturer and supplier of different types of glass products. Over the years firm has seen strong s
manufacturing base in Pakistan from where it serves the customers in neighbouring countries. Demand for its products in Ban
to set up another factory in the country. The supply chain manager is asked to find a suitable location for the new factory. Thr
supply parts to new factory which will serve markets in Dhaka, Chittagong, Gazipur, Tongi and Narayanganj. The coordinate lo
each parts plant, and the shipping cost for each supply source or market are shown below

1500 1100

cost of shipping one unit

Sources/Markets Transportation Cost Coordinates
Supply sources $/Ton Mile (Fn) Qunatity in Tons (Dn) xn yn
Syllhet 0.9 500 24.9 91.9
Khulna 0.95 300 22.9 89.5
Rajshahi 0.85 700 24.3 88.6
Markets
Dhaka 1.5 225 23.8 90.4
Chittagong 1.5 150 22.3 91.8
Gazipur 1.5 250 24 90.4
Tongi 1.5 175 23.9 90.1
Narayanganj 1.5 300 23.6 90.5
Depending upon avg transportation cost / unit in the country we assign these costs

If (x, y) is the location selected for the facility, the distance d n between the facility at location (x, y) and the supply source
or market n is given by

dn = √(x-xn)2 + (y-yn)2

Coordinates
Sources/Markets Transportation dn
Cost$/Ton Mile (Fn) Qunatity in Tons (Dn) xn yn
Syllhet 0.9 500 24.9 91.9
Khulna 0.95 300 22.9 89.5
Rajshahi 0.85 700 24.3 88.6
Dhaka 1.5 225 23.8 90.4
Chittagong 1.5 150 22.3 91.8
Gazipur 1.5 250 24 90.4
Tongi 1.5 175 23.9 90.1
Narayanganj 1.5 300 23.6 90.5
Facility location

x=
y=

Cost
tion Model
ears firm has seen strong sales growth in South Asian region. The firm maintains its
nd for its products in Bangladesh has grown rapidly and top managment has decided
n for the new factory. Three suppliers located in Syllhet, Khulna and Rajshahi will
anganj. The coordinate location, the demand in each market, the required supply from

Gravity models assume that both the markets and the supply sources can
be located as grid points on a plane. All distances are calculated as the
geometric distance between two points on the plane. These models also
assume that the transportation cost grows linearly with the quantity
shipped.

d the supply source

Sources
Markets
 Gravity Location Model
Fecto Cement (Pvt) Ltd. is getting increasing orders from Tajikistan. Ontime delivery of its consigenments using road transport
building a production plant in the country which can enable it to serve its customers in cost effective and timely manner. The t
related transportation costs. Help the management decide about the location of the new plant.

1430
861

Sources/Markets Transportation Coordinates

Cost$/Ton Mile Qunatity in
Supply sources (Fn) Tons (Dn) xn yn
Khorog 1 450 37.49 71.52
Isfara 0.9 330 40.12 70.59
Istiklol 1.3 650 40.56 69.64
Markets
Dushanbe 0.95 220 38.57 68.79
Kulob 0.95 200 37.91 69.78
Khujand 0.95 315 40.27 69.63
Istaravshan 0.95 126 39.9 69.01

Transportation Coordinates
Cost$/Ton Mile Qunatity in
Sources/Markets (Fn) Tons (Dn) xn yn dn
Khorog 1 450 37.49 71.52 3.343004
Isfara 0.9 330 40.12 70.59 0.936867
Istiklol 1.3 650 40.56 69.64 0.289696
Dushanbe 0.95 220 38.57 68.79 1.913442
Kulob 0.95 200 37.91 69.78 2.364201
Khujand 0.95 315 40.27 69.63 0.03548
Istaravshan 0.95 126 39.9 69.01 0.753374

Facility Location
x= 40.271424297378 Facility Location Google M
y= 69.665451169129

Cost
$ 2,977.30
odel
enments using road transportation has proved to be challenging in recent years. The firm is considering
ctive and timely manner. The table below provides details pertainig to supply and demand markets and the

ty Location Google Maps Screenshot

The company should construct a plant in

Khujand. It is on the managers discretion
if they build the plant on the exact
coordinates or someplace near the
coordinates.