– Is a general approach that is useful to evaluate a given alternative and given alternatives

1. Determine which factor is relevant2. Assign weight to each factor that indicates

relative importance compared with all other factors

3. Decide a common scale of all factors and set a minimum acceptable score if necessary

4. Score each location alternatives5. Multiply the factor weight by the score for

each factor, and sum the result for each location alternative

6. Choose the alternative which has the highest composite score, unless it fails to meet the minimum acceptable score

A photo-process company intends to open new branches store. The following table contains information on two potential location. Which is better alternative

Factor weightalternative Weighted scores

1 2 Alterative 1 Alternative 2

Proximity to existing stores

.10 100 60.10(100)

=10.10(60) =6

Traffic volume .05 80 80 .05(80) =4 .05(80) =4

Rental cost .40 70 90 .40(70) =28 .40(90) =36

Size .10 86 92 .10(86) =8.6 .10(92) =9.2

layout .20 40 70 .20(40) =8 .20(70) =14

Operating cost

.15 80 90 .15(80) =12.15(90) =13.5

1.00 70.6 82.7

– Is a method to determine the location of a facility that will minimize the shipping cost or travel time to various destination

If the to be ship to every locations is equal you can obtain the coordinates of the center of gravity by finding the average of x coordinates these average can be easily determine using the following formulas:

Wherexi = x coordinate of destination i

yi = y coordinate of destination i

n = number of destinetion

Where:Qi= quantity to be ship on the destination

xi = x coordinate of destination

yi = y coordinate of destination

The coordinate of the destination can be obtain from 8.1B:

Destination

X Y

D1 2 2

D2 3 5

D3 5 4

D4 8 5

total 18 16

Destination x y Weekly Quantity

D1 2 2 800

D2 3 5 900

D3 5 4 200

D4 8 5 100

total 18 16 2000

Determine the center of gravity