Discuss importance of location decisions.

1
Chapter 8 Objectives

• Discuss importance of location decisions.
• Discuss factors that influence location
  decisions.
• Discuss recent location trends.
• Use techniques to solve typical location
  problems
• Cost-Profit-Volume Analysis.
• Center of Gravity Method.

2
Chapter 8 - Location Planning and Analysis

• Location planning is the determination of where
  to geographically locate your manufacturing or
  service facilities.
• Typically one of the most infrequent activities
  unless you work for a retail organization that is
  rapidly expanding (e.g. Starbucks)

3
Center of Gravity Method

• Used to determine location when minimizing
  shipping costs or travel time is the primary
  objective.

4
Center of Gravity Method

• Identify destinations using a coordinate system
  (x and y axis).
• If all weights are equal then

y axis
x axis
5
Center of Gravity Method

• Identify destinations using a coordinate system
  (x and y axis).
• If all weights are not equal then

y axis
x axis