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IE 312 - Week 04 - Question Set

The document contains questions regarding facility location problems. Question 1 asks to determine the optimal location for a new warehouse to minimize total delivery miles to six existing stores based on their locations and weekly delivery needs. Question 2 asks to use the gravity method to determine coordinates for a new facility location based on daily outbound volumes from three existing warehouses. Question 3.1 asks to use the rectilinear distance metric to find the optimal location for two copiers among four departments based on their locations and daily trip needs. Question 3.2 asks to implement the median method solution approach in Excel using formulas and macros to solve generic facility location problems.

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Salim Gündüz
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0% found this document useful (0 votes)
193 views

IE 312 - Week 04 - Question Set

The document contains questions regarding facility location problems. Question 1 asks to determine the optimal location for a new warehouse to minimize total delivery miles to six existing stores based on their locations and weekly delivery needs. Question 2 asks to use the gravity method to determine coordinates for a new facility location based on daily outbound volumes from three existing warehouses. Question 3.1 asks to use the rectilinear distance metric to find the optimal location for two copiers among four departments based on their locations and daily trip needs. Question 3.2 asks to implement the median method solution approach in Excel using formulas and macros to solve generic facility location problems.

Uploaded by

Salim Gündüz
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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IE 312

Facilities Design & Planning

Week 4
Question Set

ERGUN ARI
Question 1
• The XYZ Company has six retail sales stores in the city of Raleigh. The company needs a new
warehouse facility to service its retail stores. The location of the stores and the expected
delivery per week from the warehouse to each store are:
Store Location (miles) Expected Deliveries
1 (2,5) 7
2 (3,8) 5
3 (1,0) 4
4 (-5,-1) 8
5 (1,6) 3
6 (-3,-3) 3

• Assume that travel distance within the city of Raleigh is rectilinear and that after each
delivery the delivery truck must return to warehouse. If there are no restrictions on the
warehouse location, where should it be located? What would be the objective function
value (delivery * miles) for the location selected?
Tompkins et al. 3rd edition, Problem 10.2, page 647 2
Question 2
Let’s suppose your company wants to expand its logistics network and locate a
facility within a network of three existing facilities. Given the following data
below, find the coordinates for the new potential location using gravity method;

Daily outbound goods volume to new facility from;


• Warehouse 1: 2,500 units
• Warehouse 2: 1,300 units
• Warehouse 3: 5,000 units

• Current coordinates (x, y) of the existing facilities


• Warehouse 1: (200, 50)
• Warehouse 2: (300, 100)
• Warehouse 3: (100, 150)

3
Question 3.1
• Two high-speed copiers are to be located on the fifth floor of an office complex that houses four departments
of the Social Security Administration. The coordinates of the centroid of each department as well as the
average number of trips made per day between each department and the copiers' yet-to-be-determined
location are known and given in the following table.

Department Name x coordinate y coordinate Average Number of Daily


Trips to Copiers
A 10 2 6
B 10 10 10
C 8 6 8
D 12 5 4

a) Assume that travel originates and ends at the centroid of each department. Determine the optimal
location—the x, y coordinates—for the copiers. Use rectilinear distance metric.
b) Suppose that the weight of facility D is increased to 8. What happens now?

4
Question 3.2
Department x coordinate y coordinate Average Number of
Name Daily Trips to Copiers
A 10 2 6
B 10 10 10
C 8 6 8
D 12 5 4

Implement the Median Method solution approach in MS Excel using


a) Formulas
b) Macro

• Use rectilinear distance metric.


• Note that both methods should be generic in sense that they must be able to solve
any input. For simplicity, you can limit the number of departments to 4.

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