Question: Module 11 - Chapter 20 Weighted Average Weighted Average (Rate & Ton Miles) Warehouse Location Analysis A B C D E Supplier Dollar Rate per
Module 11 - Chapter 20
Weighted Average
Weighted Average (Rate & Ton Miles) Warehouse Location Analysis
A
B
C
D
E
Supplier
Dollar
Rate per ton-mile
Tons
Total Cost
Grid Coordinate
Horizontal
Grid Coordinate Vertical
Calculation
Horizontal
Calculation
Vertical
A
2.50
500
350
200
437,500
250,000
B
2.15
500
400
500
430,000
537,500
C
1.80
800
275
500
396,000
720,000
D
2.50
700
200
420
350,000
735,000
Sum
Market
A
2.00
380
600
300
456,000
228,000
B
1.90
320
600
600
364,800
364,800
C
2.30
400
550
700
506,000
644,000
D
2.50
250
700
650
437,500
406,250
Sum
Grand Sum
Transportation is a large influencer on our total logistics cost, so it makes sense to calculate the best location for our warehouse/DC that will minimize transportations dollars spent on incoming and outgoing shipments.
Weighted Moving Average:
WMAn = n I W1D1
W1 weight for period between 0 and 100%
Formulas:
A:
Grand Sum= Supplier Horizontal/Vertical Calculation + Market Horizontal/Vertical Calculation
Supplier= Supplier X Tons
=
Market =MarketX Tons
=
Summation
=Supplier Total + Market Total
Take Total Sum and Divide by Summation Total
Calculation - Horizontal
=Grand Sum/Summation
Calculation - Vertical
=Grand Sum/Summation
Grid for Location of Facility (Coordinates as provided/calculated on previous page)
1000
900
800
700
600
500
400
300
200
100
0
100
200
300
400
500
600
700
800
900
1000
Insert into grid based on grid location coordinates supplied.
Where would you locate your facility and why?
Rating Scale:
Rating
Criteria
Low
1
2
3
4
High
5
Transfer to an Excel Spreadsheet to see where coordinates intercept; this is where you should consider as the location/approximate location of your facility.Module 11 - Chapter 20
Weighted Average
Weighted Average (Rate & Ton Miles) Warehouse Location Analysis
A
B
C
D
E
Supplier
Dollar
Rate per ton-mile
Tons
Total Cost
Grid Coordinate
Horizontal
Grid Coordinate Vertical
Calculation
Horizontal
Calculation
Vertical
A
2.50
500
350
200
437,500
250,000
B
2.15
500
400
500
430,000
537,500
C
1.80
800
275
500
396,000
720,000
D
2.50
700
200
420
350,000
735,000
Sum
Market
A
2.00
380
600
300
456,000
228,000
B
1.90
320
600
600
364,800
364,800
C
2.30
400
550
700
506,000
644,000
D
2.50
250
700
650
437,500
406,250
Sum
Grand Sum
Transportation is a large influencer on our total logistics cost, so it makes sense to calculate the best location for our warehouse/DC that will minimize transportations dollars spent on incoming and outgoing shipments.
Weighted Moving Average:
WMAn = n I W1D1
W1 weight for period between 0 and 100%
Formulas:
A:
Grand Sum= Supplier Horizontal/Vertical Calculation + Market Horizontal/Vertical Calculation
Supplier= Supplier X Tons
=
Market =MarketX Tons
=
Summation
=Supplier Total + Market Total
Take Total Sum and Divide by Summation Total
Calculation - Horizontal
=Grand Sum/Summation
Calculation - Vertical
=Grand Sum/Summation
Grid for Location of Facility (Coordinates as provided/calculated on previous page)
1000
900
800
700
600
500
400
300
200
100
0
100
200
300
400
500
600
700
800
900
1000
Insert into grid based on grid location coordinates supplied.
Where would you locate your facility and why?
Rating Scale:
Rating
Criteria
Low
1
2
3
4
High
5
Transfer to an Excel Spreadsheet to see where coordinates intercept; this is where you should consider as the location/approximate location of your facility.
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