Facility Location: Amrinder Kaur
Facility Location: Amrinder Kaur
Facility Location: Amrinder Kaur
Amrinder Kaur
Facility location
A factory or a plant is the manufacturing
facility of a company.
A warehouse is the storage facility of a
manufacturing or a distribution company.
The offices of the service sector company
such as courier company, a bank or an
insurance company are its facilities.
Apply simple
median model Apply centre of Apply transportation Apply ardalan
for finding location gravity model for model heuristic to
with least least for least choose best location
overall transportation transportation cost transportation cost for service operations
cost
Environment
Proximity to and community
raw materials
Facility location
planning
Proximity Proximity to
to markets subcontractors
If
C1M , C2M, C3M…..CZM are different costs associated
with a plant site, M on z different cost items.
C1N,C2N,C3N…..CZN are different costs associated
with the plant site, N on Z different cost items.
W1,W2,W3 are weight age given to cost items.
Value of relative merit of plant sites M and N is given by:
(C1M/C1N)w1 * (C2M/C2N)w2*………..(CzM/CzN)w3
In the Brown and Gibson model, for each plant site ‘i’ a
Loaction measure is calculated
LMi=CFMi*[D*OFMi=(1-D)*SFMi]
Where,
CFMi specifies the measure of critical factors for the plant
site,i.Its value is either 0 or 1.
OFMi specifies the measure of objective factors for the
plant site i(0<=OFMi<=1 and summation of OFMi)
How to do it???
Cost (Rs)
Fixed Cost (FC)
0 500 1000
0 500 1000
0 VBE500 1000
Cost /Revenue(Rs)
Fixed Cost (High)
0 500 VBE 1000