Course Focus

IE583 Lecture Eight:

Facility Location

Single Facility
Location Problems
Rectilinear and
Euclidean Distances

Facility
Location

Professor Dah-Chuan Gong

Flow Systems
and Clustering
Methodology (GT)

Product Design- QFD

CRAFT and
BLOCPLAN

Process Design

Facility
Layout

IE583 Facility Layout and

Material Handling
(Facility Planning)

October 2014

Systematic Layout Planning

Material Handling Equipment

Warehouse
Operations

Material
Handling

Automated Storage and

Retrieval System
Warehouse Sizing
and Layout
Order Picking Analysis

Conveyor System
and AGVS
2

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Introduction (Location-Allocation)

Introduction (Location-Allocation)

Location Problems: involve determining the location of one or more

new facilities
f iliti iin one or more off severall potential
t ti l sites.
it Th
The costt off
locating each new facility at each of the potential sites is assumed to be
known. It is the fixed cost of locatingg a new facilityy at a pparticular site
plus the operating and transportation cost of serving customers from this
facility-site combination.
Allocation Problems: assume that the number and location of facilities
are known a priori and attempt to determine how each customer is to be
served In other words,
served.
words given the demand for goods at each customer
center, the production or supply capacities at each facility, and the cost
of serving each customer from each facility, the allocation problem
determines how much each facility is to supply to each customer center.
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Location-Allocation
Location
Allocation Problems: involve determining not only how
much each customer is to receive from each facility but also the
number of facilities along with their locations and capacities.

Location

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Allocation

Risdy Furnitures Logistics Problem

Risdy Furnitures Logistics Problem

Summary result of the total cost for five alternatives

Risdiyono ID: 107988

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Planar Single-Facility Location Problems

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Example: Tyler Emergency Medical Services (EMS)

The locations of the two existing EMS facilities in Tyler,
Tyler Texas
are shown on the following map.

Minisum Location Problem with Rectilinear Distances

Minisum Location Problem with Euclidean Distances

Thee popu
population
at o density
de s ty for
o each
eac of
o the
t e citys
c ty s tracts
t acts iss also
a so shown.
s o
The darker red areas have up to 5,000 people per square mile.

Minimax Location Problem with Rectilinear Distances

The southeast part of Tyler, census tract 18.03, has experienced

rapid growth, with its population almost doubling in the last
twelve years.

Minimax Location Problem with Euclidean Distances

Th
The residents
id t off this
thi ttractt hhave complained
l i d th
thatt it ttakes
k ttoo long
l
for the EMS vehicles to reach them.

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Example: Tyler Emergency Medical Services (EMS)

A general guideline for locating EMS facilities in urban areas
is that an EMS vehicle should be able to answer 95 percent
of its calls within 10 minutes in tracts that have a population
density of 1,000 people per square mile.

EMS locations

Census tract 7, on the west side of the city with a

population density of 967 people per square mile, should
be included in the study as well.

Population Density of Tyler,

Texas

Thus, the census tracts that are as dark as or darker than

census tract
t t 7,
7 should
h ld bbe within
ithi a 10-minute
10 i t ddrive
i ti
time
zone of an EMS facility.
Areas of rapid
p g
growth.

Gary Lin

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10 minute
response
zones

Census Track 7

With MapPoint, it is easy to calculate a

d i titime zone bby jjustt selecting
drive
l ti the
th
pushpin and going under Tools on the
menu bar to select drive time zone in
terms of the number of minutes of drive
time.
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Where should EMS locate three facilities so as to meet its

coverage goals for Tyler?

Three EMS locations

were chosen through a
trial and error approach
and evaluation using
MapPoint
MapPoint.

Some areas not in

coverage zone.

Gary Lin

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Gary Lin

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Minisum Examples

Minisum location problem

Locate a hospital,
hospital fire station (minimax too),
too) police
station, or library in a metropolitan area

Consider a new machine to be located in a shop.

shop The new
machine (or facility) receives parts from existing machines (or
facilities) and supplies parts to existing machines. There is a
t t l costt off moving
total
i parts
t tto and
d from
f
the
th new machine.
hi Total
T t l
cost depends on the location of the new machine.

Locate a warehouse in a logistics system

Locate a dock in a warehouse for purpose of loading
and unloading goods in the warehouse

We wish to locate the new machine so as to minimize the total

cost.

Locate a copy machine in a library

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Notation
m = the number of existing machines
Pi = the location of existing machine i = (ai, bi)
X = the location of new machine = (x, y)
p pper month between Pi and X
ti = the number of trips
d(X, Pi) = the distance between X and Pi
tid(X, Pi) = total distance items travel per month to and from X and Pi
vi = the average velocity of items traveling to and from the two machines (X
and Pi)
( , Pi) = the total travel time per
p month between the two machines
((ti/vi))d(X,
ci = the cost per unit time (hour) of travel between the two machines
(citi/vi)d(X, Pi) = the cost per month involving the two machines
= wid(X, Pi), where wi = ci(ti/vi)

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The total cost of movement between the new machine and all the
existing machines
= f(X)
A choice of X that minimizes f(X)
A minisum location problem
wi can be treated as a weight
weight
m

f ( X ) = w 1d ( X , P1 ) + ... + w md ( X , Pm ) = w i d ( X , Pi )
i =1

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Majority Theorem
When one weight constitutes a majority of the total weight, an
optimal
ti l new facility
f ilit location
l ti coincides
i id with
ith the
th existing
i ti facility
f ilit
which has the majority weight.

f ( X ) = w 1d ( X , P1 ) + ... + w md ( X , Pm ) = w i d ( X , Pi )
i =1

It is true not only when distances are Euclidean

Euclidean, but also a more
general class of distances (Lp) including rectilinear distances.

P3
P4

P1
X

P2

P5

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Major Types of Distances

Minisum Location Problem with Rectilinear Distance

X = (x, y) and Pi = (ai, bi)

Rectilinear distance (Manhattan distance, Right-angle distance,

R t
Rectangular
l distance)
di t
)

f ( X ) = f ( x , y ) = w i ( x ai + y bi ) = f1 ( x ) + f2 ( y )

Euclidean distance
Chebyshev distance (or Tchebychev distance)

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Lp = (x1 x2 p y1 y2 p )1/p

When p=1, Lp Rectilinear distance

When p=2, Lp Euclidean distance

When p= , Lp = max(x1 x2 , y1 y2 ) , Chebyshev

distance

i =1

where f1( x ) = w i ( x ai ) and f2 ( y ) = w i ( y bi )

Given 2 points , A (x1, y1) and B (x2, y2) in the space

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i =1

i =1

We can minimize the total cost of movement by solving

the two independent problems of minimizing the cost
of movement in the x direction and minimizing the cost
of movement in the y direction.
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Example 1

Example 1 (continued)

Suppose that a conveyor line is being planned to run into a

warehouse.
h
Th
The liline will
ill bbegin
i att th
the point
i t (0
(0,5)
5) (all
( ll coordinates
di t are
in units of tens of feet) and run parallel to the x-axis into the
warehouse. Items entering the warehouse on the line are picked up
at the end of the line and transported directly to one of the truck
docks at the points P1=(7,10), P2=(15,7), P3=(15,3), and P4=(12,0).
Th
The total
t t l annuall costt per 10 ft for
f transporting
t
ti items
it
between
b t
the
th
end of line and points P1 through P4 will be $160, $40, $60, and
$140, respectively.
p
y The equivalent
q
annual cost p
per 10 ft of conveyor
y
is $180.
Find the length of the conveyor so as to minimize the total cost.

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Example 1: Method 2-- Check on the slope changes

Example 1: Data and Cost Function

i

wi

160

40

60

140

180

Pi

(7,10)

(15,7)

(15,3)

(12,0)

(0,5)

The coefficient of x in any

interval defined by adjacent
points is the sum of the
weights of the points to the left
of x minus the sum of the
weights of the points to the
right of x.

f1 ( x ) = 180 x 0 + 160 x 7 + 140 x 12 + 100 x 15

The minimizing point is x=7,

f1(7)=2760
(7) 2760

Or
Or, the slope for any interval
but the first is the sum of the
slope of the previous interval
((from left to right)
g ) and twice
the weight of the point
common to both intervals.
-220= -580+2(180),
100= -220+2(160)

f2 ( y ) = f2 (5) = 140(5) + 60( 2) + 180(0) + 40( 2) + 160(5) = 1700

Method 1-- Apply the majority theorem (median condition)

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Example 2: Contour Line Method

Example 1: MathCAD Graph (different data set)

Minimize the function f(X)

( ) for which there are m=4 existing
g
facilities, with locations P1=(4,2), P2=(8,5), P3=(11,8), and P4=(13,2),
with weights 1, 2, 2, and 1, respectively.
We normalize the weights by dividing by their sum (6) to obtain
1/6, 1/3, 1/3, and 1/6, respectively.

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Example 2: Contour Line Method (continued)

wi

1/6

1/3

1/3

1/6

Pi

(4 2)
(4,2)

(8 5)
(8,5)

(11 8)
(11,8)

(13 2)
(13,2)

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f1 ( x ) =

1
6

x 4 +

1
3

x 8 +

1
3

x 11 +

f2 ( y ) =

1
3

y 2 +

1
3

y 5 +

1
3

y 8

1
6

x 13

The slope of every contour line passing through a box B is the negative
ratio of the bottom margin
g x coefficient to the left margin
g y coefficient.

Contour line (or called level

li ) every point
line):
i t on the
th
contour line has the same
value of the function f.

2
3
=
1
3

Contour set (level set): each

contour set whose
b d iis a contour
boundary
t
liline,
is the set of all points
having
g values of f(X)
( ) no
longer than those of the
points on the contour line.
2
3
=
1

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Contour Lines for Three Simple Rectilinear Location

Problems
Optimum location

The contour
line passes
P1=(4,2)
What is the value of
this contour line?
P1

Observations?

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30

Contour Line Construction Procedure (continued)

Contour Line Construction Procedure

5. The horizontal lines partition the plane into rows. For each row,
compute the coefficient of y and write the coefficient in the left
margin.

1. Pass a horizontal line and a vertical line through each existing

facility location
location. Each horizontal line should extend beyond the
leftmost and beyond the rightmost existing facility location.
Similarly, each vertical line should extend beyond the
b tt
bottommost
t and
d beyond
b
d the
th topmost
t
t existing
i ti facility
f ilit location.
l ti

6. The slope for everyy contour line passing

g through
g ag
given box is the
negative ratio of the number in the bottom margin to the number in
the left margin.

2. For each vertical line, total the weights of the existing facilities
lying on the line and write the total at the bottom of the line.
line

7 U
7.
Use th
the single
i l contour
t
liline construction
t ti method
th d to
t conduct
d ta
contour line through each point of interest.

3. For each horizontal line, total the weights of the existing

facilities lying on the line and write the total at the left of the
line.

8 Continue the construction until the contour line value cannot be

8.
reduced. Then, the optimum location is obtained.

4. The vertical lines partition the plane into columns. For each
column, compute the coefficient of x and write the coefficient in
the bottom margin.
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99. Alternatively,
te at e y, to determine
dete
e those
t ose points
po ts tthat
at minimizee f(X),
( ), either
et e
identify the points where the margin numbers change from negative
to nonnegative or else, equivalently, use the median conditions..

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Example 3 (p521)

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Example 3 ( continued) p521

Tompkins et al.

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Example 3 ( continued) p521

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Tompkins et al.

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Tompkins et al.

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Example 3 ( continued) p521

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Tompkins et al.

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Minisum Location Problem with Squared Euclidean

Distance f ( X ) = w d ( X ,P ) + ... + w d ( X ,P ) = w d ( X ,P )

Minisum Location Problem with Squared Euclidean

Distance ((continued))

i =1

Objective
j
Function
m

Minimize f ( x , y) = w i (x a i ) + (y bi )
m

i =1
i=
1

f ( x , y) = w i (x a i ) + (y bi )
i =1

Since f1(x) and f2(y) are separable, the optimal solution of

f1(x) is independent of the optimal solution of f2(y).

Note both f1(x) and f2(y) are convex functions. Thus, the
optimal x* and y* that minimize f1(x) and f2(y) can be
obtained by setting the first derivatives equal to zero.

= w i (x a i ) + w i (y bi )
2

i =1

i =1

f1 ( x ) = w i (x a i )

f 2 ( y) = w i (y b i )

i =1

i =1

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Minisum Location Problem with Squared Euclidean

Distance ((continued))

x* =

i =1
m

Example 4

w
i =1

With the following data,

data solve the centroid
problem (i.e., a minisum location problem with
squared Euclidean distance).
distance)

y* =

w b
i =1
m

i i

w
i =1

wi

Pi

(0,0)

(0,10)

(5,0)

(12,6)

(x*, y*) = (4.25, 4.0)

It is also called a centroid problem.

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The equation for finding x*

x and y*
y that minimize
f1(x) and f2(y) can be obtained as following:

w i ai

m
df2
= 2w i ( y bi ) = 0
dy i =1

df1 m
= 2 w i (x a i ) = 0
dx i=1

= f1 ( x ) + f 2 ( y)

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Minisum Location Problem with Euclidean Distance

Minisum Location Problem with Euclidean Distance

(continued)
1

The graph of [(x a i ) 2 + (y bi ) 2 ]2 is a cone (strictly convex

function).

Objective Function
m

Minimize f ( x , y ) = w i
i =1

( x ai ) + ( y bi )
2

[(x a i ) 2 + (y b i ) 2 ]2

contours
(ai, bi)

2
2
= w i ( x ai ) + ( y bi )

i =1

1/2

Since f1(x) and f2(y) are not separable, the optimal solution
of f1(x) is dependent of the optimal solution of f2(y).

(ai, bi, 0)

w i [(x a i )
f(x,
f(x y) =
i=1

+ (y bi ) 2 ] 2

is strictly convex unless the

convex hull is a line segment.

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Minisum Location Problem with Euclidean Distance

Minisum Location Problem with Euclidean Distance

(continued)

(continued)
m
w
f
2
2 1/2
= i ( x ai ) + ( y bi ) 2 ( x ai )

x i =1 2

First order optimality

p
y conditions :

f(x, y)
=0
x

f(x,
( , y)
=0
y

= i ( x , y )( x ai ) =0

(x*,
(x* y*) is optimal

i =1

Any point where the partial derivatives are zero is optimal.

Let
i (x,y ) =

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x=

wi

[( x ai ) + ( y bi ) ]1/2
2

a (x,y )
i =1
m

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(x,y )
i =1

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44

Minisum Location Problem with Euclidean Distance

Minisum Location Problem with Euclidean Distance

(continued)

(continued)
If we put the two partial derivatives into a two
two-tuple,
tuple, we get
the gradient of f evaluated. ==> a general form

m
w
f
2
2 1/2
= i ( x ai ) + ( y bi ) 2 ( y bi )

y i =1 2

f ( X ) = i ( X )( X Pi )

= i ( x , y )( y bi ) =0

i =1

i =1

Set the gradient of f to zero vector and solve the solution.

solution
m
m
(X )
( X ) X i ( X )Pi = 0
X = i
Pi

y=

b (x,y )
i =1
m

i =1

(x,y )
i =1

i =1

( X )

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Minisum Location Problem with Euclidean Distance

Weiszfeld s Algorithm (continued)
--Weiszfelds

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Minisum Location Problem with Euclidean Distance

Weiszfeld s Algorithm (continued)
--Weiszfelds

Step 0: Set the centroid location as the initial location (X(0)).

m
( X ) and let n=0
Step 1: Define WF ( X ) = i
Pi
i =1 ( X )
Step 2: Solve WF(X(n)) and let X(n+1) = WF(X(n))

To avoid the problem of division by zero when use

this algorithm is to perturb the problem as follows:
replace
p
1/2

2
2
d ( X ,Pi ) = ( x ai ) + ( y bi )

Step 3: If d(WF(X(n)), WF(X(n+1))) , then STOP

b
by

X(n) is the solution

1/2

2
2
d ( X ,Pi ) = ( x ai ) + ( y bi ) +

otherwise,, let n = n+1 and go

g to Step
p 2.

Weiszfelds Algorithm Example (R1, p208)

Alternatively, replace d(WF(X(n)), WF(X(n+1))) by

f ( x ( n +1)) , y ( n +1)) ) f ( x ( n ) , y ( n ) )
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