Question: DBS is also expecting the demand for its top-of-the range devices to increase further from the next year. Given the increase in annual requirement, the
DBS is also expecting the demand for its top-of-the range devices to increase further from the next year. Given the increase in annual requirement, the production manager is contemplating to start manufacturing the special components in-house to save costs rather than sourcing them from outside.
- Going forward, if it is found to be a better decision to make the components in-house, DBS will then need to select an optimal location point to set up its manufacturing facility. Given the following location information and expected material movements from several transportation depots to the DBS intended manufacturing facility, find and plot the best location using centre-of-gravity method:
| Transportation depots | x | Y | Expected material movements (no. of units) |
| 1 | 16 | 15 | 22000 |
| 2 | 5 | 13 | 15000 |
| 3 | 10 | 11 | 5400 |
| 4 | 6 | 5 | 8000 |
| 5 | 12 | 6 | 11500 |
| 6 | 18 | 8 | 10000 |
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