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    Factor Rating and COG

    Uploaded by

    Vansh Bhatia

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Factor Rating and COG

    Uploaded by

    Vansh Bhatia
    7 views5 pages

    Copyright

    © © All Rights Reserved

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    PPT, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    7 views5 pages

    Factor Rating and COG

    Uploaded by

    Vansh Bhatia

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 5

    Facility Location

    1
    Factor-Rating Method

    1. Develop a list of relevant factors.


    2. Assign a weight to each factor reflecting its relative
    importance to the firm.
    3. Develop a rating scale for the factors.
    4. Score each location on each factor based on the scale.
    5. Multiply the scores by the weights for each factor and
    total the weighted scores for each location.
    6. Make a recommendation based on the maximum point
    score.
    Factor Rating Example
    Center-of-Gravity Method

    1. Place the locations to be supported on a


    coordinate system (like a graph).
    2. Calculate the center of gravity:

    X  coordinate 
     lx i i
    Ycg  coordinate 
     ly
    i i

     l
    cg
    l i i
    Where:
    xi = x-coordinate of location i.
    yi = y-coordinate of location i.
    li = quantity (load) of goods moved to/from location
    i.
    Center-of-Gravity Method
    • This approach requires that the analyst find the center
    of gravity of the geographic area being considered

    Computing the Center of Gravity for Matrix Manufacturing


    Coordinates Load
    Location (X,Y) (li) lixi liyi
    Cleveland (11,22) 15 165 330
    Columbus (10,7) 10 165 70
    Cincinnati (4,1) 12 165 12
    Dayton (3,6) 4 165 24
    Total 41 325 436
    • Computing the Center of Gravity for Matrix

    Xc.g. 

    ManufacturingliXi 325
      7.9 ; Yc.g. 
     liYi 436
      10.6
     li 41  li 41
    5

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