Plant location methods

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Plant location methods

Identify the important location factors. Rate each factor according to its relative importance, i. Assign each location according to the merits of the location for each factor.

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Calculate the rating for each location by multiplying factor assigned to each location with basic factors considered. Find the sum of product calculated for each factor and select best location having highest total score. Let us assume that a new medical facility, Health-care, is to be located in Delhi.

The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method?

The total score for location 2 is higher than that of location 1. Hence location 2, is the best choice. Weighted Factor Rating Method In this method to Plant location methods quantitative and qualitative factors, factors are assigned weights based on relative importance and weightage score for each site using a preference matrix is calculated.

The site with the highest weighted score is selected as the best choice. What is the weighted score for these sites? Which is the best location?

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Load distance method in Operations Management Load-distance Method The load-distance method is a mathematical model used to evaluate locations based on proximity factors. The objective is to select a location that minimizes the total weighted loads moving into and out of the facility.

The distance between two points is expressed by assigning the points to grid coordinates on a map. An alternative approach is to use time rather than distance. It will receive inbound shipments from several suppliers, including one in Ghaziabad.

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If the new warehouse were located at Gurgaon, what would be the distance between the two facilities? If shipments travel by truck, the distance depends on the highway system and the specific route taken.

Computer software is available for calculating the actual mileage between any two locations in the same county.

Plant location methods

However, for load-distance method, a rough calculation that is either Euclidean or rectilinear distance measure may be used. Euclidean distance is the straight-line distance, or shortest possible path, between two points.

Essentially, this distance is the sum of the two dashed lines representing the base and side of the triangle. The distance travelled in the x -direction is the absolute value of the difference in x-coordinates.

Depending on the industry, a load may be shipments from suppliers, between plants, or to customers, or it may be customers or employees travelling to or from the facility.

The firm seeks to minimize its load- distance, generally by choosing a location so that large loads go short distances. To calculate a load-distance for any potential location, we use either of the distance measures and simply multiply the loads flowing to and from the facility by the distances travelled.

These loads may be expressed as tones or number of trips per week. This calls for a practical example to appreciate the relevance of the concept. Let us visit a new Health-care facility, once again.

The new Health-care facility is targeted to serve seven census tracts in Delhi. The table given below shows the coordinates for the centre of each census tract, along with the projected populations, measured in thousands.

Customers will travel from the seven census tract centers to the new facility when they need health-care. Two locations being considered for the new facility are at 5.

Details of seven census tract centers, co-ordinate distances along with the population for each centre are given below.Factors involved in the plant location decision.

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Location studies are usually made in two phases namely, Composite measure method and location break-even analysis composite measure method. The steps of the composite measure method are: Develop a list of all relevant factors.

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Plant Location Models - TIS Consulting Group