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    Facility Location Planning: Sandy Wong

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    hjbjflaefaifnaerf
    This document discusses facility location planning and non-traditional location strategies, and introduces the location set covering problem. It provides examples of competitive clustering, saturation marketing, and other non-traditional strategies. It then explains the location set covering problem, giving the objective of finding the minimum number and locations of facilities to serve all demand points within a service distance. An example problem is presented to identify the minimum clinics needed and their locations to serve communities within 30 miles.

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    Facility Location Planning: Sandy Wong

    Uploaded by

    hjbjflaefaifnaerf
    37 views10 pages
    This document discusses facility location planning and non-traditional location strategies, and introduces the location set covering problem. It provides examples of competitive clustering, saturation marketing, and other non-traditional strategies. It then explains the location set covering problem, giving the objective of finding the minimum number and locations of facilities to serve all demand points within a service distance. An example problem is presented to identify the minimum clinics needed and their locations to serve communities within 30 miles.

    Original Description:

    6

    Original Title

    Lecture 6

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    This document discusses facility location planning and non-traditional location strategies, and introduces the location set covering problem. It provides examples of competitive clustering, saturation marketing, and other non-traditional strategies. It then explains the location set covering problem, giving the objective of finding the minimum number and locations of facilities to serve all demand points within a service distance. An example problem is presented to identify the minimum clinics needed and their locations to serve communities within 30 miles.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views10 pages

    Facility Location Planning: Sandy Wong

    Uploaded by

    hjbjflaefaifnaerf
    This document discusses facility location planning and non-traditional location strategies, and introduces the location set covering problem. It provides examples of competitive clustering, saturation marketing, and other non-traditional strategies. It then explains the location set covering problem, giving the objective of finding the minimum number and locations of facilities to serve all demand points within a service distance. An example problem is presented to identify the minimum clinics needed and their locations to serve communities within 30 miles.

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    You are on page 1of 10

    Lecture 6

    Facility
    Location
    Planning

    Sandy Wong
    Course Structure

    2
    Learning Objectives

    Discuss the non-traditional location strategies


    for site selection

    Identify the minimum number and location of


    facilities that serve all demand points within the
    specified maximal service distance using
    Location Set Covering Problem.

    3
    Non-traditional location strategies
    for site selection
    Competitive Clustering
    A common practice to attract customers when locating the
    site among other competitors to form a cluster for
    customer comparison shopping, e.g. Auto Dealers, Motels
    Saturation Marketing
    Facilities belonging to the same company are located very
    close to each other or concentrate in a particular area
    e.g. Digital products shops in Mongkok
    Marketing Intermediaries
    Extend the service market well beyond the confines of
    geography or distance by providing the means for service
    providers meet the users e.g. Credit Card Companies
    4
    Non-traditional location strategies for site selection

    Substitute Electronic Media for Travel


    Advanced telecommunication systems & Internet have made
    some issues of site consideration less relevant
    e.g. Electronic salary deposit; phone communications & video
    conferencing reduce personal contacts
    Impact of the Internet on Service Location
    A virtual location of pure e-commerce firms (e.g.
    Amazon.com), An alternative channel of distribution for
    established click-and-mortar retailers (e.g. Parkn shop), virtual
    location of an auction facilitator (e.g. eBay)
    Separation of Front from Back Office
    Front & back office need not be co-located for many services
    (e.g. dry cleaning, shoe repair, banks and ATMs).
    Viewing location decisions from internal (employee) and
    external (customer) viewpoint highlights opportunities to
    achieve economies of scale. 5
    Location Set Covering
    Problem
    Location Set Covering Problem
    Find the minimum number and location of facilities that will serve all
    demand points within some specified maximal service distance.

    Location 6 cannot
    serve as a clinic site

    Decision need to be made:


    1. Determine the minimum number of clinics required and
    2. Its location such that every community will be served
    within 30 miles of at least one clinic. 7
    Location Set Covering Problem (Cont.)
    Step 1: List the set of communities served from potential sites

    Q1. How many clinics are required?


    Q2. Which communities will you select to setup the
    8
    clinics?
    Location Set Covering Problem
    (Suggested answers)

    Step 2: Identify the min no. of potential sites and their location which can cover the
    required service distance.

    We need to setup at least ___ clinics on community ______


    9
    Key Take Away

    Non-traditional location strategies for site


    selection

    Objectives & decision-making of location


    set covering problems

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