We are trying to decide a warehouse location to minimize our costs of moving supplies to the factory, and then from the factory to the customers. Relevant costs, demands/supplies and locations are given in the table below and this info is used for the remaining questions. Using the center of gravity method, what is the X coordinate of your recommended location for the factory.
|
Location |
Supply/Demand (Lbs) |
Rate per Lb for Shipping |
x coordinate of location |
y coordinate of location |
|
Supply1 |
100 |
$2.50 |
3 |
3 |
|
Customer1 |
30 |
$1.10 |
6 |
5 |
|
Customer2 |
20 |
$1.10 |
2 |
4 |
|
Customer3 |
30 |
$1.10 |
1 |
5 |
|
Customer4 |
40 |
$1.10 |
2 |
7 |
Center of gravity is based on the optimal volume method which automatically reduces cost.
X-coordinate = 3* 100 + 6*30 + 2*20 + 30*1 + 40*2 /(100+30+20+30+40)
X-coordinate = 2.86
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We are trying to decide a warehouse location to minimize our costs of moving supplies to...