Gravity Location Model

Ghani Glass (Pvt.) Ltd. is a manufacturer and supplier of different types of glass products. Over the years firm has seen strong
manufacturing base in Pakistan from where it serves the customers in neighbouring countries. Demand for its products in Ban
set up another factory in the country. The supply chain manager is asked to find a suitable location for the new factory. Three
parts to new factory which will serve markets in Dhaka, Chittagong, Gazipur, Tongi and Narayanganj. The coordinate location,
parts plant, and the shipping cost for each supply source or market are shown below

Sources/Markets Transportation Cost Coordinates

Supply sources $/Ton Mile (Fn) Qunatity in Tons (Dn) xn yn
Syllhet 0.9 500 24.9 91.9
Khulna 0.95 300 22.9 89.5
Rajshahi 0.85 700 24.3 88.6
Markets
Dhaka 1.5 225 23.8 90.4
Chittagong 1.5 150 22.3 91.8
Gazipur 1.5 250 24 90.4
Tongi 1.5 175 23.9 90.1
Narayanganj 1.5 300 23.6 90.5

If (x, y) is the location selected for the facility, the distance d n between the facility at location (x, y) and the supply source or
market n is given by

dn = √(x-xn)2 + (y-yn)2

Coordinates
Sources/Markets Transportation dn
Cost$/Ton Mile (Fn) Qunatity in Tons (Dn) xn yn
Syllhet 0.9 500 24.9 91.9
Khulna 0.95 300 22.9 89.5
Rajshahi 0.85 700 24.3 88.6
Dhaka 1.5 225 23.8 90.4
Chittagong 1.5 150 22.3 91.8
Gazipur 1.5 250 24 90.4
Tongi 1.5 175 23.9 90.1
Narayanganj 1.5 300 23.6 90.5
Facility location

x=
y=

Cost
tion Model
ars firm has seen strong sales growth in South Asian region. The firm maintains its
nd for its products in Bangladesh has grown rapidly and top managment has decided to
r the new factory. Three suppliers located in Syllhet, Khulna and Rajshahi will supply
The coordinate location, the demand in each market, the required supply from each

Gravity models assume that both the markets an

be located as grid points on a plane. All distances
geometric distance between two points on the pl
assume that the transportation cost grows linear
shipped.

d the supply source or

Sources
Markets
me that both the markets and the supply sources can
nts on a plane. All distances are calculated as the
etween two points on the plane. These models also
sportation cost grows linearly with the quantity
 Sources/Mark on Cost Coordinates dn
$/Ton Mile Qunatity in
Supply sourc (Fn) Tons (Dn) xn yn
Syllhet 0.9 500 24.9 91.9 1.86038355
Khulna 0.95 300 22.9 89.5 1.27258404
Supply Rajshahi 0.85 700 24.3 88.6 1.86765012
Dhaka 1.5 225 23.8 90.4 0.00050611
Chittagong 1.5 150 22.3 91.8 2.0522823
Gazipur 1.5 250 24 90.4 0.19982164
Tongi 1.5 175 23.9 90.1 0.31572205
Markets Narayanganj 1.5 300 23.6 90.5 0.22397882

decision variable
x 23.8001789
y 90.3995266

cost 3031.64582
 Chart Title
93

92

91

90

89

88

87

86
22 22.5 23 23.5 24 24.5 25 25.5
Fecto Cement (Pvt) Ltd. is getting increasing orders from Tajikistan. Ontime delivery of its consigenments using road transport
building a production plant in the country which can enable it to serve its customers in cost effective and timely manner. The t
related transportation costs. Help the management decide about the location of the new plant.

Sources/Markets Transportation Coordinates

Cost$/Ton Mile Qunatity in
Supply sources (Fn) Tons (Dn) xn yn While solving this question
assignmnet, each group is a
Khorog 1 450 37.49 71.52 and submit one solved ques
Isfara 0.9 330 40.12 70.59
Istiklol 1.3 650 40.56 69.64
Markets
Dushanbe 0.95 220 38.57 68.79
Kulob 0.95 200 37.91 69.78
Khujand 0.95 315 40.27 69.63
Istaravshan 0.95 126 39.9 69.01
 nments using road transportation has proved to be challenging in recent years. The firm is considering
tive and timely manner. The table below provides details pertainig to supply and demand markets and the

While solving this question is an individual

assignmnet, each group is also supposed to develop
and submit one solved question
Masood Textile Mills (Pvt) Ltd. is getting increasing orders from Pakistan. Ontime delivery of its consigenments using road tran
building a production plant in the country which can enable it to serve its customers in cost effective and timely manner. The t
transportation costs. Help the management decide about the location of the new plant.

Sources/Markets Coordinates
Transportation Qunatity in Tons
Supply sources Cost$/Ton Mile (Fn) (Dn) xn yn
Sialkot 1 450 32.4945 74.5229
Multan 0.9 330 30.1575 71.5249
Lodhran 1.3 650 29.6869 71.6673
Markets
Lahore 0.95 220 31.5204 74.3587
Faisalabad 0.95 200 31.4504 73.135
Karachi 0.95 315 24.8607 67.0011
Rawalpindi 0.95 126 33.5651 73.0169
enments using road transportation has proved to be challenging in recent years. The firm is considering
and timely manner. The table below provides details pertainig to supply and demand markets and the related
Fashion retail brand ZARA has been getting increasing online orders from the Pakistani region. To cater to this demand, the br
incurring increased transportation costs. The firm is considering building a production plant in the country to cater this deman
have access to high quality cotton for their products. The table below provides details about supply and demand markets and
transportation costs. This model will help identify optimal location for ZARA factory.

Sources/Markets Coordinates
Transportation Qunatity in
Supply sources Cost$/Ton Mile (Fn) Tons (Dn) xn yn
Lasbela 1 500 25.87 66.71
Multan 0.9 430 30.15 71.52
Rahim Yar Khan 1.3 600 28.42 70.29
Markets
Lahore 0.95 320 31.5 74.35
Karachi 0.95 400 24.86 67
Islamabad 0.95 195 33.68 73.04
Faislabad 0.95 126 31.45 73.13
 . To cater to this demand, the brand is
n the country to cater this demand and also
supply and demand markets and the related
Nestle Pakistan (Pvt) Ltd. is getting high demand for its bottled water in Pakistan. To meet the high demand for its bottled wat
to efficiently meet the consumer demand and expand its resources to meet the future demand. The firm is considering buildin
in cost effective and timely manner. The table below provides details pertainig to supply and demand markets and the related

Sources/Markets Coordinates
Transportation Qunatity in Tons
Supply sources Cost$/Ton Mile (Fn) (Dn) xn yn
Lahore 1.1 450 31.480293 74.271161
Karachi 0.9 330 24.831919 67.138295
Islamabad 1.05 650 33.646474 73.017519
Markets
Lahore 0.8 220 31.480293 74.271161
Karachi 0.8 200 24.831919 67.138295
Islamabad 0.8 315 33.646474 73.017519
Faisalabad 0.8 126 31.314436 73.342086
high demand for its bottled water, company is planning to open a new setup a new filteration and bottling plant in order
d. The firm is considering building filteration and bottling plant in the country which can enable it to serve its customers
emand markets and the related transportation costs. Help the management decide about the location of the new plant.
KSD Ltd. is a small time manufacturer and supplier of different toilettries and cosmetics. Over the years firm has seen strong sa
in Pakistan from where it serves the customers in neighbouring cities as well. Demand for its products in Pakistan has grown ra
country. This would enable the firm to have an added capacity to serve the different markets of Pakistan. The supply chain ma
approached you as being students of SCM to find him an optimal soultion. Three suppliers located in Lahore, Karachi and Pesh
center which will serve markets in Islamabad, Bahwalpur, Quetta, Okara, Hunza and Faisalabad. The coordinate location, the s
quantity in tons for each market and supply source.

Quantity
Transportation Cost
Sources/Markets in Tons Coordinates
PKR/Ton Km (Fn)
(Dn)
Supply sources xn yn
Lahore 2333.33333333333 2400 31.5204 74.36
Karachi 2600 2966.667 24.8607 67.0011
Peshawar 2100 2133.333 34.0151 71.5249
Markets
Islamabad 3000 1333.333 33.6844 73.0479
Bahawalpur 2900 2840 29.3544 71.6911
Quetta 2933.33333333333 1933.333 30.1798 66.975
Okara 2933.33333333333 1846.667 30.8138 70.4534
Hunza 3666.66666666667 1066.667 36.3167 74.65
Faisalabad 3000 1453.333 31.4504 73.135
he years firm has seen strong sales growth in Karachi region and is growing rapidly. The firm maintains its supplying base
oducts in Pakistan has grown rapidly and top managment has decided to set up another distribution center in the
f Pakistan. The supply chain manager is asked to find a suitable location for the new distribution center. He has
ted in Lahore, Karachi and Peshawar will supply raw materials including fats, chemicals and other materials to new
. The coordinate location, the shipping cost per ton per km for each supply source and market are shown along with the
Khaadi is getting increasing orders from outlets in Karachi. On-time delivery of product offerings using road transportation has
central warehouse in the city which will serve as a distribution center for its customers in a cost effective and timely manner. T
the related transportation costs. Help the management decide about the location of the new warehouse.

Transportation Cost Quantity in Coordinates

Sources/ Mark
$/Ton Mile (Fn) Tons (Dn) xn yn
Supply sources
S.I.T.E. 1 1000 25.20 67.04
Port Qasim 1.5 650 24.78 67.33
Malir Halt 1.2 400 24.89 67.18
Korangi 0.8 800 24.84 67.12
Markets
DHA 0.95 220 25.07 66.92
Tariq Road 0.95 200 25.04 67.05
North Nazim 0.95 315 25.28 67.00
Saddar 0.95 126 24.85 67.02
s using road transportation has proved to be challenging in recent years. The firm is considering building a
effective and timely manner. The table below provides details pertaining to supply and demand markets and
arehouse.