Facility Location Models设施选址模型.pptVIP

IES 371 Engineering ManagementChapter 10: Location Week 11 August 17, 2005 Objectives Identify the factors affecting location choices Explain how to apply the various methods to location decisions Facility Location Competitive Advantages The need to produce close to the customer due to time-based competition, trade agreements, and shipping costs. The need to locate near the appropriate labor pool to take advantage of low wage costs and/or high technical skills. Issues in facility location Proximity to Customers Business Climate Total Costs Infrastructure Quality of Labor Suppliers Other Facilities Free Trade Zones Political Risk Government Barriers Trading Zones Environmental Regulation Host Community Plant Location Methodology:Location Factor Rating Procedures Identify factors that are important in the location decision Prioritize the factor by its importance. Each factor is weighted from 0 to 1.00 Subjective score (0 to 100) is assigned to each site for each factor Sum up the weighted score. The site with highest score is the most attractive Plant Location Methodology:Center-of-Gravity Technique Used for locating single facility that considers existing facilities, the distances between them, and the volumes of goods to be shipped between them. Involves formulas used to compute the coordinates of the two-dimensional point that meets the distance and volume criteria stated above. The coordinates for the location of the new facility are computed as follows: Ex 1: Center-of-Gravity Technique Several automobile showrooms are located according to the following grid which represents coordinate locations for each showroom. Plant Location Methodology:Load-Distance Technique Various locations are evaluated using a load-distance value. For a single potential location, a load-distance value (ld) is computed as follows: Select the location with lowest ld value Plant Location Methodology:Break-even analysis Also refer to Supplement A – Decision Making Bas