1. Your company needs to decide where to locate its distribution center (DC). Th

Question

1. Your company needs to decide where to locate its distribution center (DC). The company would like to minimize the total (monthly volume distance) of delivering goods to its eight different customer locations. The table below lists the expected volume (in number of trips per month) from the DC to each customer and the location (in x,y coordinates) for each customer. Use a Gravity Model to determine the optimal location coordinates for the DC to minimize the total (volume * distance) traveled to the customers Customer x Coordinate Coordinate Volume 350 274 176 12.65 14.11 42.11 8.44 12.11 -17.87 21.88 17.88 -16.12 38.78 6.88 17.88 5.78 -12.54 6.88 14.88 31.02 368 192 347 108 342

Explanation / Answer

Solution :

Customer X Coordinate Y Coordinate Volume A 12.65 38.78 350 B 14.11 6.88 274 C 42.11 17.88 176 D -8.44 5.78 88 E 12.11 -12.54 368 F -17.87 6.88 192 G 21.88 -14.88 347 H 17.88 31.02 108 I -16.12 -7.87 342 Optimal Location 8.91 5.04

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