ASSIGNMENT $2$

LOCATION ANALYSIS

Problem $1$:

A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is looking at three possible locations. The factors, weights, and ratings being considered are given below:

Ratings

Factor

Weights

Peoria

Des Moines

Chicago

Nearness to markets

$20$

$4$

$7$

$5$

Labour cost

$5$

$8$

$8$

$4$

Taxes

$15$

$8$

$9$

$7$

Nearness to suppliers

$10$

$10$

$6$

$10$

Which city should they choose? Use factor rating method.

Problem $2$:

Our main distribution centre in Phoenix, AZ is due to be replaced with a much larger, more modern facility that can handle the tremendous needs that have developed with the city$$s growth. Fresh produce travels to the seven store locations several times a day, making site selection critical for efficient distribution. Using the data in the following table, determine the map coordinates for the proposed new distribution centre. Use Center of Gravity method.

Store Locations

Map Coordinates $($x$,$y$)$

Truck Round Trips per Day

Mesa

$(10,5)$

$3$

Glendale

$(3,8)$

$3$

Camelback

$(4,7)$

$2$

Scottsdale

$(15,10)$

$6$

Apache Junction

$(13,3)$

$5$

Sun City

$(1,12)$

$3$

Pima

$(5,5)$

$10$