Compute the best possible central location for the warehouse using the center of gravity method.

Calculate the load distance factor for the different CWH options using the formulae below.

Convert the load distance values to be used as scores in the factor rating method.

Compute the factor scores and final values of various warehouses and suggest the best option.

What other qualitative factors should be taken into consideration by A.B. Corp. before they decide on the best CWH location? Explain.

LD= C[L; * Dil

Where,

LD = load-distance value

Li= load (weight) shipped from proposed facility to location i

D; = distance between the proposed facility and location i (straight line distance)

The distance (D) in this formula can be the distance travelled (if the values are known) or it can be

determined from a map. It can also be computed by using the formula for the straight line or minimum

distance between two points, which is also the hypotenuse of a right angle triangle:

D: = SORT I(x: -x) + (V - y) ]

Where,

X.

y = co-ordinates of proposed facility location

X;, y; = co-ordinates of existing facility i