Bonds

Facility Location Homework

1. Use the location rating factor method and the data below to select the best facility location.

Location Factor | Weight | Site 1 |   | Site 2 |   | Site 3 |   |

Labor pool & climate | 0.3 | 80 | 24 | 65 | 19.5 | 90 | 27 |

Proximity to suppliers | 0.2 | 100 | 20 | 91 | 18.2 | 75 | 15 |

Wage rates | 0.15 | 60 | 9 | 95 | 14.25 | 72 | 10.8 |

Community environment | 0.15 | 75 | 11.25 | 80 | 12 | 80 | 12 |

Proximity to customers | 0.1 | 65 | 6.5 | 90 | 9 | 95 | 9.5 |

Shipping modes | 0.05 | 85 | 4.25 | 92 | 4.6 | 65 | 3.25 |

Air service | 0.05 | 50 | 2.5 | 65 | 3.25 | 90 | 4.5 |

  |   | Totals | 77.5 |   | 80.8 |   | 82.05 |

Location Factor | Weight | Site 1 | Site 2 | Site 3 |

Labor pool & limate | .30 | 80 | 65 | 90 |

Proximity to suppliers | .20 | 100 | 91 | 75 |

Wage rates | .15 | 60 | 95 | 72 |

Community environment | .15 | 75 | 80 | 80 |

Proximity to customers | .10 | 65 | 90 | 95 |

Shipping modes | .05 | 85 | 92 | 65 |

Air service | .05 | 50 | 65 | 90 |

2. Use the center-of-gravity method and the data below to select the best facility location.

Parameters | Site A | Site B | Site C | Site D |

X-Location | 200 | 100 | 250 | 500 |

Y-Location | 200 | 500 | 600 | 300 |

Load (tons) | 75 | 105 | 135 | 60 |

  | Volume | X | Y | V * X | V * Y |

Site A | 75 | 200 | 200 | 15,000 | 15,000 |

Site B | 105 | 100 | 500 | 10,500 | 52,500 |

Site C | 135 | 250 | 600 | 33,750 | 81,000 |

Site D | 60 | 500 | 300 | 30,000 | 18,000 |

Total | 375 |   |   | 89,250 | 166,500 |

Center Point |   | 238 | 444 |   |   |

3. Use the load-distance method (with straight line distances) and the data below to select the best facility location.

Potential Sites |

Parameters | Site 1 | Site 2 | Site 3 |

X-Location | 360 | 420 | 250 |

Y-Location | 180 | 450 | 400 |

Supplier Sites |...