Chapter 4 Facility Location and Layout

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Chapter 4Facility Location and Layout
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• A facility is something built or established to
  serve a purpose
• Facilities management is a location of that
  decision for that facility and the composition or
  internal layout of the facility once located.

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Example

• A manufacturing company decided to expand its
  facility because of an increase of sales of its
  product. There are currently two facilities, one
  in Tulsa and the other in Tempe. The company has
  warehouses in Washington, Cleveland, Lincoln, San
  Francisco, and Phoenix. The company feels that
  transportation costs might be reduced if a new
  plant a different location is built.

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Lincoln
Cleveland
San Fransisco
Tulsa
Phoenix
Tempe
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Inputs

• Sales suggest 10 plant expansion but future
  forecasts for the coming 10 years suggests steady
  increase up to double the current sales volume
  after which the sales will level off.
• Transportation cost is proportional to the
  distance traveled.

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Questions?

• Determine best location?
• What are the factors we need to consider?
• What information we need to answer the question?

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Analytical Techniques

• Define quantifiable objective function
• Minimize total distance traveled or
• maximize maximum distance traveled
• How do you measure distance?
• Euclidean distance or rectilinear distance