Facility Location - Management Class设施的位置管理类.pptVIP

Facility Location Janny Leung Facility Location Facility location is the determination of the geographical site(s) in which to locate a firm’s operations. Globalisation Factors to consider Quantitative tools for analysis locating a single facility locating within a network of facilities Location decisions must be co-ordinated with production planning and distribution strategies Location Theory - Early History Weber’s classification of industries (1909) Weight-losing process locate close to raw materials e.g. steel making Weight-gaining process incorporate “ubiquitous” raw materials e.g. air, water locate near markets Hoover’s (1957) tapered transportation rates tapered transportation rates minimum costs at either production point or market point Factors - Location Related Land/Construction costs Community receptivity Local business climate Quality of life Government incentives tax breaks free trade zone Government barriers currency controls trading blocs local content environmental regulations Political Risks Factors - Resource/Cost Related Proximity to suppliers Quality/Availability of labour Transportation/Energy infrastructure Proximity to customers Inbound/Outbound distribution costs Other (company-owned) facilities Competitive Advantage Quantitative Tools Center of Gravity Method Mixed Integer Programming Simulation Heuristics Other methods Single facility location Multi-facility location Supply chain network design Dynamic location models Single Facility Location Given a set of demand points, each located at (xi,yi) with a specified volume Vi to be moved to a facility (at transportation rate Ri ), locate a single facility to minimise total transportation costs. Find (X,Y) to Minimise ? Vi Ri di where di = [(Xi - X)2 + (Yi - Y)2]1/2 Centre of Gravity Method Grid method centroid method Locate facility at: Concerns/Assumptions of Centre-of-Gravity Model continuous demand concentrated at a point transportation costs proportional to Euclidean distan