Chapter 7 supplement, facility location models. This chapter includes contents: Explain the major categories of facilities and the factors important in facility location; explain the general considerations of the facility site selection process for services and manufacturing facilities; use three quantitative tools for facility site selection;...
Trang 1Robert S Russell, Bernard W Taylor III, Ignacio Castillo, Navneet Vidyarthi
Trang 2Learning Objectives
Explain the major categories of facilities and the
factors important in facility location.
Explain the general considerations of the facility site
selection process for services and manufacturing
facilities.
Discuss the factors a company should consider
when selecting facility site and explain how
geographic information systems (GIS) can be used
as a site selection tool.
Use three quantitative tools for facility site selection.
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Supplement 7-2
Trang 3Lecture Outline
Types of Facilities
Site Selection: Where to Locate
Site Selection: Factors to Consider
Location Analysis Techniques
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Supplement 7-3
Trang 4 Retail and service facilities
smallest and least costly
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Supplement 7-4
Trang 5Factors in Heavy Manufacturing Location
Trang 6Factors in Light Industry Location
Land costs
Transportation costs
Proximity to markets
depending on delivery requirements
including frequency of delivery required by customer
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Supplement 7-6
Trang 7Factors in Retail Location
Trang 8Site Selection: Where to Locate
Infrequent but important
being “in the right place at
the right time”
Must consider other
factors, especially
financial considerations
Location decisions made
more often for service
distribution and transportation costs
energy availability and cost
community infrastructure
quality of life in community
government regulations and taxes
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Supplement 7-8
Trang 9Global Supply Chain Factors
Group trade agreements
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Supplement 7-9
Trang 10Regional and Community Location
Government services (e.g., Chamber of
Commerce)
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Supplement 7-10
Trang 11Regional and Community Location
Trang 13Geographic Information Systems (GIS)
Computerized system for storing, managing,
creating, analyzing, integrating, and digitally
displaying geographic, i.e., spatial, data
Specifically used for site selection
Enables users to integrate large quantities of
information about potential sites and analyze these data with many different, powerful analytical tools
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Supplement 7-13
Trang 14GIS Diagram
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Supplement 7-14
Trang 15Location Analysis Techniques
Location factor rating
Trang 16Location Factor Rating
Identify important factors
Weight factors (0.00 - 1.00)
Subjectively score each factor (0 - 100)
Sum weighted scores
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Supplement 7-16
Trang 17Location Factor Rating
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WEIGHT
80 100 60 75 65 85 50
Site 1
65 91 95 80 90 92 65
Site 2
90 75 72 80 95 65 90
Site 3
SCORES (0 TO 100)
Weighted Score for “Labor pool and climate” for
Site 1 = (0.30)(80) = 24
Trang 18Location Factor Rating
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Site 2
27.00 15.00 10.80 12.00 9.50 3.25 4.50 82.05
Site 3
WEIGHTED SCORES
Site 3 has the highest
factor rating
Trang 19Location Factor Rating With Excel
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Supplement 7-19
Trang 20Location Factor Rating With OM Tools
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Supplement 7-20
Trang 21Centre-of-Gravity Technique
Locate facility at centre of movement in geographic area
Based on weight and distance traveled;
establishes grid-map of area
Identify coordinates and weights shipped for each location
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Supplement 7-21
Trang 22facility at centre of gravity
xi, yi = coordinates of existing
facility i
Wi = annual weight shipped
from facility i
n Wi
Trang 2475 + 105 + 135 + 60
Trang 26Centre-of-Gravity With Excel
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Supplement 7-26Formula for
x coordinate
Trang 27Centre-of-Gravity With OM Tools
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Supplement 7-27
Trang 28Load-Distance Technique
Compute (Load x Distance) for each site
Choose site with lowest (Load x Distance)
Distance can be actual or straight-line
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Supplement 7-28
Trang 29li = load expressed as a weight, number of trips or units
being shipped from proposed site and location i
di = distance between proposed site and location i
di = (xi - x)2 + (yi - y)2
(x,y) = coordinates of proposed site
(xi , yi) = coordinates of existing facility
where,
where,
Trang 31Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*
* Choose site 3
Trang 32Load-Distance With Excel
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Supplement 7-32
=B7*C11+C7*C12+D7*C13+E7*C14
Trang 33Load-Distance With OM Tools
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Supplement 7-33
Trang 34Copyright 2014 John Wiley &
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7-34
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