Current Supplier Sites

Supplier 1 Supplier 2 Supplier 3 Supplier 4

X
6
1
1
4
Y
1
2
4
5
Wt
70
60
30
40

420
70

60
120

30
120

160
200

Plant
3.35
2.55
200

Adapted from spreadsheet file

Ch10tn_Location.xls in Chase
Aquilano & Jacobs text CD

1
1
6
1

670.0
510.0

= Location Choice
2
5
4

Supplier 1 Choice
Location A

Location B

Supplier 1
Supplier 2
Supplier 3
Supplier 4
Plant (Centroid)
Trial/ Solution

4
3
2

"Option Buttons" allows

used to make discrete
location decisions.

0
1

Scenario: The structure of a

supply chain is being evaluated
before setting it up. A plant,
whose location is to be
determined, receives material
from 4 suppliers.
Suppliers 2, 3 and 4 are already
identified along with their
locations. Supplier 1 can be
chosen from one of two
locations, whichever is more
convenient to the plant.
Some quantitative help is
required in exploring the problem
and choosing the location of the
plant and Supplier 1 to minimize
inbound logistics costs.

Trial Location
4.00
3.00

Weighted Distance Values For Centroid Plant Location

294
174
114
124
214.90114 144.81022 82.840208 101.39033
659.75
349.5
228.75
257

706.00
543.94
1495.00

Distance
Measure
Rectilinear
Euclidean
Squared Euclidean

Weighted Distance Values For Trial/ Solution Location

280
240
120
197.9898987 189.7367 94.86833
560
600
300

80
80
160

720.00
562.59
1620.00

Summary of Selected Scenarios

Supplier 1 at Location A
Solution
Coordinates
Method
X
Y
Solver-Rectilinear
Solver-Euclidean
Solver-Sq. Euclidean

4.00
2.80
3.35

2.00
2.67
2.55

Supplier 1 at Location B
Solution
Coordinates
Method
X
Y
Solver-Rectilinear
Solver-Euclidean
Solver-Sq. Euclidean

4.00
3.80
3.00

4.00
4.05
3.60

Load Distance Value According to Measure:

Rectilinear
Euclidean
Sq. Euclidean
660.00
724.27
706.00

564.69
539.88
543.94

1640.00
1558.30
1495.00

M
C

Load Distance Value According to Measure:

Rectilinear
Euclidean
Sq. Euclidean
500.00
510.36
552.00

416.33
415.13
426.45

1160.00
1095.55
928.00

M
C

Location B chosen for Supplier 1 based on above

Supplier 3 work now reallocated to Supplier 2 for Vendor Rationalization (assume no other costs change)
Solution
Coordinates
Load Distance Value According to Measure:
Method
X
Y
Rectilinear
Euclidean
Sq. Euclidean
Solver-Rectilinear
Solver-Euclidean
Solver-Sq. Euclidean

4.00
3.82
3.00

4.00
3.84
3.30

560.00
566.83
594.00

434.50
433.36
441.90

1280.00
1174.62
982.00

M
C