Professional Documents
Culture Documents
Henry C. Co
Technology and Operations Management,
California Polytechnic and State University
Contents
I. Location
Importance of Location
Systematic Decision Process
Factor Rating
Cost-volume Analysis
Locational Breakeven Analysis
Single Facility Location
Multi-Facility Location
II. Distribution
The Transportation Problem
The Transportation Problem with Lost Sales
iii. It is not about time!
Quantitative Approaches
Qualitative Approaches
Integrating Qualitative & Quantitative Data
1. Define the location objectives and associated
constraints.
2. Identify the relevant decision criteria.
Quantitative (e.g., cost of doing business)
Qualitative (i.e., less tangible).
3. Relate the objectives to the criteria using
appropriate models (e.g., economic cost models,
BEP analysis, LP, factor rating system).
4. Do field research to generate relevant data and use
the models to evaluate the alternative locations.
5. Select the location that best satisfies the criteria.
costs. 300
200
A Superior
C Superior
Example: 100 B Superior
0
0 2 4 6 8 10 12 14 16
Annual Output (000)
Cell D3 =B3+C3*$B$1. To determine the total costs for the other three
locations, we copy the formula for D3 and paste onto cells D4:D6.
Since total demand is less than total capacity, the total shipment
to each destination should be equal to its demand, B26:F26 =
B27:F27
http://www.business.auburn.edu/~gibsobj/SCM%20-%200129%20-%20Location%20Location.doc.