Centre of gravity method Centre of gravity method of location planningof location planning

This method merely indicates the ideal location in the grid-map that would ensure that the weighted distances

travelled on the whole is minimum.

Centre of Gravity methodFinds location of distribution centre that minimizes distribution costs.

It considers :

Grid map of Target marketGrid map of Target market

Centre of Gravity methodTo ascertain an appropriate location for the New facility

Calculate (X * W) for each existing demand/supply point ,then sum up all the values and divide it by sum of weights at each demand point.

Calculate (X * W) for each existing demand/supply point ,then sum up all the values and divide it by sum of weights at each demand point.

Example of centre of gravity method :

A B C D

X 200 100 250 500

Y 200 500 600 300

Weights 75 105 135 60

Load- Distance methodLoad- Distance methodAn objective measure of total load distance for each of

potential site and choosing the best load distance among each of the alternative sites and existing demand/supply

points will help the location planner to an appropriate location for proposed facility.

Load-Distance methodEvaluates the two or more potential sites and choose an appropriate location of distribution centre from the alternatives available ….that minimizes the distribution costs.

It considers :

Grid map of target market with Grid map of target market with location co-ordinates of four location co-ordinates of four candidates / sites.candidates / sites.

Example of load-Distance method : Calculate Distance between each existing demand / supply point

(i) and the candidate / site (j) for proposed facility. Compute (load * Distance ) for each site.

A B C D

X 200 100 250 500

Y 200 500 600 300

Weights 75 105 135 60

Sites X Y

1 360 180

2 420 450

3 250 400

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