To determine: Select the better site using center of gravity.
Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.
Answer to Problem 15P
Explanation of Solution
Given Information:
It is given that L1 and L2 are two possible sites.
Destination | Quantity |
D1 | 900 |
D2 | 300 |
D3 | 700 |
D4 | 600 |
D5 | 1,200 |
Determine the coordinates of each destination using the given map:
Destination | X | Y | Quantity |
D1 | 1 | 2 | 900 |
D2 | 2 | 4 | 300 |
D3 | 3 | 1 | 700 |
D4 | 4 | 2 | 600 |
D5 | 5 | 3 | 1,200 |
Determine the total quantity
It is calculated by adding all the sum of quantity.
Determine the Center of gravity for the optional location for each distribution center
It is calculated by multiplying each destination value with the quantity of each destination and the result is divided by total quantity.
Determine the coordinates for L1 and L2.
The below are the coordinates for L1 and L2: which are found using the map
Determine the distance between each location and the center of gravity.
It is calculated by adding the difference in X coordinates with the difference in Y coordinates.
Hence, L2 is closer to the better site using center of gravity
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Chapter 8 Solutions
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