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8. Consider the warehouse location decision facing CupAMoe's (Example 8.60). a. (**) Suppose Robbie has learned that Capital City's population is expected to grow by just 5% over the next five years, while Springfield's population is expected to increase by 50,000 over the same time period. Recalculate the X and Y coordinates using this new information. b. (**) Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Springfield and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates. c. (**) Which do you think is a better weighting factor to consider: population or sales dollars? Explain.

8. Consider the warehouse location decision facing CupAMoe's (Example 8.60). a. (**) Suppose Robbie has learned that Capital City's population is expected to grow by just 5% over the next five years, while Springfield's population is expected to increase by 50,000 over the same time period. Recalculate the X and Y coordinates using this new information. b. (**) Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Springfield and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates. c. (**) Which do you think is a better weighting factor to consider: population or sales dollars? Explain.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 14P
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Warehouse Location Decision at CupAMoe's Robbie Roberts, owner of CupAMoe's Coffee, is trying to determine where to locate his newest distribution warehouse. Figure 8.6 shows the location and population of the three major towns to be served by the warehouse. Figure 8.6 Coordinate Map of Demand Locations, CupAMoe's Coffee Y Y* (1,5) 1 = Capital City (Pop. 400,000) 2 Springfield" (Pop. 200,000) Shelbyville (Pop. 170,000) 3 X (4.5, 3) 4 (4,1) Robbie would like to locate the warehouse to minimize transportation costs and provide the best overall delivery speed to his three markets. One way to do this is by using a weighted center of gravity method to identify a possible site. Using the populations as weight, the weighted X and Y coordinates are: 5 X* = (400,000*1 + 200, 000*4.5 + 170, 000*4)/770, 000 = 1,980,000/770, 000 = 2.57 = (400,000*5 + 200, 000*3 + 170, 000*1) /770, 000 2,770, 000/770, 000 = 3.60
Transcribed Image Text:Warehouse Location Decision at CupAMoe's Robbie Roberts, owner of CupAMoe's Coffee, is trying to determine where to locate his newest distribution warehouse. Figure 8.6 shows the location and population of the three major towns to be served by the warehouse. Figure 8.6 Coordinate Map of Demand Locations, CupAMoe's Coffee Y Y* (1,5) 1 = Capital City (Pop. 400,000) 2 Springfield" (Pop. 200,000) Shelbyville (Pop. 170,000) 3 X (4.5, 3) 4 (4,1) Robbie would like to locate the warehouse to minimize transportation costs and provide the best overall delivery speed to his three markets. One way to do this is by using a weighted center of gravity method to identify a possible site. Using the populations as weight, the weighted X and Y coordinates are: 5 X* = (400,000*1 + 200, 000*4.5 + 170, 000*4)/770, 000 = 1,980,000/770, 000 = 2.57 = (400,000*5 + 200, 000*3 + 170, 000*1) /770, 000 2,770, 000/770, 000 = 3.60
8. Consider the warehouse location decision facing CupAMoe's (Example 8.60). a. (**) Suppose Robbie has learned that Capital City's population is expected to grow by just 5% over the next five years, while Springfield's population is expected to increase by 50,000 over the same time period. Recalculate the X and Y coordinates using this new information. b. (**) Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Springfield and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates. c. (**) Which do you think is a better weighting factor to consider: population or sales dollars? Explain.
Transcribed Image Text:8. Consider the warehouse location decision facing CupAMoe's (Example 8.60). a. (**) Suppose Robbie has learned that Capital City's population is expected to grow by just 5% over the next five years, while Springfield's population is expected to increase by 50,000 over the same time period. Recalculate the X and Y coordinates using this new information. b. (**) Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Springfield and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates. c. (**) Which do you think is a better weighting factor to consider: population or sales dollars? Explain.
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