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Centre of gravity method Centre of gravity method of location planningof location planning
This method merely indicates the ideal location in the grid-map that would ensure that the weighted distances
travelled on the whole is minimum.
Centre of Gravity methodFinds location of distribution centre that minimizes distribution costs.
It considers :
Grid map of Target marketGrid map of Target market
Centre of Gravity methodTo ascertain an appropriate location for the New facility
Calculate (X * W) for each existing demand/supply point ,then sum up all the values and divide it by sum of weights at each demand point.
Calculate (X * W) for each existing demand/supply point ,then sum up all the values and divide it by sum of weights at each demand point.
Example of centre of gravity method :
A B C D
X 200 100 250 500
Y 200 500 600 300
Weights 75 105 135 60
Load- Distance methodLoad- Distance methodAn objective measure of total load distance for each of
potential site and choosing the best load distance among each of the alternative sites and existing demand/supply
points will help the location planner to an appropriate location for proposed facility.
Load-Distance methodEvaluates the two or more potential sites and choose an appropriate location of distribution centre from the alternatives available ….that minimizes the distribution costs.
It considers :
Grid map of target market with Grid map of target market with location co-ordinates of four location co-ordinates of four candidates / sites.candidates / sites.
Example of load-Distance method : Calculate Distance between each existing demand / supply point
(i) and the candidate / site (j) for proposed facility. Compute (load * Distance ) for each site.
A B C D
X 200 100 250 500
Y 200 500 600 300
Weights 75 105 135 60
Sites X Y
1 360 180
2 420 450
3 250 400
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