Exam 19: Operational Decision-Making Tools: Facility Location Models

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Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.

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Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.

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A package delivery service wants to build a new distribution center in Boise, Idaho. The location of the center needs to be in the vicinity of Interstate-84, Highway-55 and the Boise Airport. The following table provides the coordinates of these three sites and the number of weekly packages. A package delivery service wants to build a new distribution center in Boise, Idaho. The location of the center needs to be in the vicinity of Interstate-84, Highway-55 and the Boise Airport. The following table provides the coordinates of these three sites and the number of weekly packages.   The suggested coordinates for the new warehouse using the center of gravity method are The suggested coordinates for the new warehouse using the center of gravity method are

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