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Location Problem Solving

In:

Submitted By nazharh
Words 3345
Pages 14
04-03-2016

LOCATION DECISIONS

LOCATION PROBLEMS
• Location of factories, departments , facilities
• The best location offers multiple advantages
1.Minimum cost advantage
 Sum of minimum costs (fixed and variable)
 Minimum Fixed cost
 Minimum Variable cost (input/output/both)
2.Maximum Profit advantage (volume / unit price)
3.Maximum Coverage advantage
4.Minimum Interference advantage
5.Various combinations of 1 to 5

LOCATION DECISIONS











Factory
Retail Centre ( Mall)
Hospital
Trauma centre
Fire Tender
Watch Tower
Library in an academic campus
Gymkhana
Bank
Restaurant

LOCATION THEORY



1.
2.
3.
4.
5.

Location theory is concerned with identifying that location , which by virtue of its location offers the greatest advantage. There are five well known theories
Least cost theory
Maximum profit theory
Maximum coverage theory
Minimum interference theory
General Location Theory

1

04-03-2016

THERE ARE MANY PROBLEMS
A) Based on the number of facilities
1) Single facility location
2) Multi facility locations ( with or without interaction among themselves) B) Based on how the distance between a pair of facilities is measured 1) Straight line ( Euclidean)
2) Squared Euclidean
3) Rectilinear
4) Any other
C) Based on the number of options available for locating the facility (discrete or continuous )
D) Based on where the location is (on a plane or in space)

COMMON EXAMPLES

Some facilities are located at known places and to be served by a common facility. Where to locate the common facility ?

TYPES OFLOCATION PROBLEMS
( Contd.)
E) Based on the objective function
1) Mini Sum ( minimise the sum of costs / distance / time etc.,)
2) Maxi Sum ( maximise the sum of sales / profit
/ market coverage etc.,)
3) Mini Max (minimise the maximum of time/ distance /

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