Week 6 Exercise (Facility Location)

Question 1
Using the following factor ratings (100 points is the maximum), determine which location for a
clothing store, A, B, or C, should be chosen.
      LOCATION  
Weigh
Factor (100 points each) t A B C
Convenience of access 0.15 80 70 60
Parking facilities 0.20 72 76 92
Frontage 0.18 88 90 90
Shopper traffic 0.27 94 86 80
Operating costs 0.10 98 90 82
Neighborhood 0.10 96 85 75
  1.00  87.02  82.62  80.90

Answer: Location A scored the highest weighted score, therefore, should be the chosen
location for the clothing store.

Question 2
A company that handles hazardous waste wants to open up a central disposal centre. The
objective is to minimize the total shipping cost to the disposal centre from five receiving
stations it operates. Given the locations of the receiving stations and the volumes to be shipped
daily below, determine the location of the disposal centre.
Location of Volume
x̄ = 10(26)+4(9)+4(25)+2(30)+8(40)/ 26+9+25+30+40 Processing Tons per
Station (x, y) Day
x̄ = 776/ 130 10, 4 26
x̄ = 5.97 4, 1 9
4, 7 25
2, 6 30
ȳ = 4(26)+1(9)+7(25)+6(30)+7(40)/ 26+9+25+30+40 8, 7 40
ȳ = 748/ 130
ȳ = 5.75

Answer: The location of the disposal centre is (5.97, 5.75)

1
Question 3
A toy manufacturer distributes its toys from five distribution centres (DCs) throughout the
country. A new plant is to be built for a new line of toys. The monthly quantities to be shipped
to each DC are approximately the same. A coordinate system has
Location (x, y)
been established and the coordinates of each DC have been
determined as shown below. Determine the optimal coordinates A 3, 7
of the plant. B 8, 2
C 4, 6
Answer: D 4, 1
E 6, 4
X= 25/5= 5

Y= 20/5 =4.0
The centre of gravity is at (5, 4) = the optimal coordinates of the plant.