Question: Using the Dinko s Facility Location Model 1 . Suppose Evelyn chooses not to open both facilities immediately. Instead she will open a single facility
Using the Dinkos Facility Location Model
Suppose Evelyn chooses not to open both facilities immediately. Instead she will open a single facility and wait to see whether it is successful before opening the second.
a If you followed the directions above, you found that the best location for a single facility is the corner of nd Avenue and th Street. If this location is a success, where should Evelyn place the second facility?Use your work area for two facilities. Enter the location into cells C:D and evaluate potential locations for the second Dinkos by changing cells C:D
b The instructions above also directed you to find the best locations for two facilities when they are positioned simultaneously. These locations were the corner of th Avenue and th Street, and the corner of th Avenue and th Street. Which of these facilities should be opened first? Explain.
c How and why does the pair of locations identified in part a differ from the pair of locations in part b If Evelyn thinks it is very likely that she will open both facilities, which pair of locations should she choose?
a We used the metropolitan distance metric rather than the Euclidean distance. Is the Euclidean distance between two buildings longer or shorter than the metropolitan distance?
b When placing a single facility, our objective function minimized the weighted average distance between the facility and the ten office buildings. What is the optimal location if the objective function minimizes the maximum distance between the facility and the ten office buildings? What is the value of the objective function ie the maximum distance at this optimal location?
c Under what circumstances does it make sense to choose an objective function that minimizes the maximum distance between a facility and its customers? Give an example.
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