Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 2AME
Summary Introduction

Interpretation:Minimization of load distance score on the load distance plot.

Concept Introduction:Load distance is one of the methods used to decide the location of a new facility specifically to optimize the loads to be carried over various distances. The distances are plotted as x and y coordinates. There are ways to minimize the load distance scores by fixing one ordinate and scrolling on the other ordinate.

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A toy manufacturer produces toys in five locations throughout the country. Raw materials (primarily barrels of powdered plastic) will be shipped from a new, centralized warehouse whose location is to be determined. The monthly quantities to be shipped to each location are the same. A coordinate system has been established, and the coordinates of each location have been determined as shown. Determine the coordinates of the centralized warehouse.
i. Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products
Which of the following technique emphasizes transportation cost in the determination of facility location?(a) Location rating factor technique(b) Transportation technique(c) Centre-of-gravity technique(d) Both (b) and (c)
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