Service Management: Operations, Strategy, Information Technology 8th Edition by James Fitzsimmons,Mona Fitzsimmons,Sanjeev Bordoloi

Exercise 1

Four hospitals located in one county are cooperating to establish a centralized bloodbank facility to serve them all. On an xy coordinate grid of the county, the hospitals are found at the following locations: H 1 = (5, 10), H 2 = (7, 6), H 3 = (4, 2), and H 4 = (16, 3). The expected number of deliveries per month from the blood bank to each hospital is estimated at 450, 1,200, 300, and 1,500, respectively. Using the cross-median approach, recommend a location for the blood bank that will minimize the total distance traveled.