Location Stages in Facility Location Decisions Determining the need for a new facility Identifying...
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Transcript of Location Stages in Facility Location Decisions Determining the need for a new facility Identifying...
LocatioLocationn
Stages in Facility Stages in Facility Location DecisionsLocation Decisions
DeterminingDetermining the need for a new the need for a new
facilityfacility
Identifying the relevant factors Identifying the relevant factors in selecting a locationin selecting a location
Selecting a general locationSelecting a general location
Selecting a siteSelecting a site
Determining the Need Determining the Need for a New Factoryfor a New Factory
Change in demand, up or downChange in demand, up or down
New productNew product
Changes in the economics of the Changes in the economics of the business, e.g. labour costs, material business, e.g. labour costs, material costs, material sources, supporting costs, material sources, supporting industriesindustries
Government action, I.e. on Government action, I.e. on environmental groundsenvironmental grounds
Determining the Need Determining the Need for a New Factoryfor a New Factory
Plant Size
Cost
Production Costs
Transport Costs
Total Costs
Ideal Plant Size
Stages in Facility Stages in Facility Location DecisionsLocation Decisions
DeterminingDetermining the need for a new the need for a new
facilityfacility
Identifying the relevant factors Identifying the relevant factors in selecting a locationin selecting a location
Selecting a general locationSelecting a general location
Selecting a siteSelecting a site
Strategic Strategic Considerations in Considerations in Facility LocationFacility Location Access to markets, ie EUAccess to markets, ie EU
Nissan, Toyota & Honda invested $2.6 Nissan, Toyota & Honda invested $2.6 billion in UKbillion in UK
Responsiveness to CustomersResponsiveness to Customers
Access to technologyAccess to technology
Location Decisions - Location Decisions - ManufacturingManufacturing
Favorable Labour ClimateFavorable Labour Climate Proximity to MarketsProximity to Markets Quality of LifeQuality of Life Proximity to SuppliersProximity to Suppliers Proximity to Parent CompanyProximity to Parent Company Utilities, Taxes, and Real Estate Utilities, Taxes, and Real Estate
CostsCosts
Location Decisions Location Decisions - Services- Services
Proximity to CustomersProximity to Customers Transportation Costs and Transportation Costs and
Proximity to MarketsProximity to Markets Location of CompetitorsLocation of Competitors Site-specific FactorsSite-specific Factors
Locating a Single Locating a Single FacilityFacility
On-site expansionOn-site expansion
++ Keeps management togetherKeeps management together
++ Reduces construction time & Reduces construction time & costscosts
++ Avoids splitting up operationsAvoids splitting up operations
-- Diseconomies of scaleDiseconomies of scale
-- Poor materials handlingPoor materials handling
-- Increasingly complex Increasingly complex production controlproduction control
-- Lack of spaceLack of space
Locating a Single Locating a Single FacilityFacility
Building a new plantBuilding a new plant
++ Reduced risk of complete loss Reduced risk of complete loss of of production due to production due to accidentaccident
++ Escape unproductive labourEscape unproductive labour++ Modernise with new Modernise with new
machinerymachinery
++ Reduce transport costsReduce transport costs
Locating a Single Locating a Single FacilityFacility
Relocate ( move out of existing facility Relocate ( move out of existing facility ))
-- Relocating firms tend to be Relocating firms tend to be smallsmall
-- They don’t move very farThey don’t move very far
-- Often single-plant companies Often single-plant companies needing needing more space and needing more space and needing to redisign to redisign their production their production processes and layoutsprocesses and layouts
LocatioLocationnHealth-WatchHealth-Watch
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
Weighted Score
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
WS = (25 x 4)
Weighted Score
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
WS = (25 x 4) + (20 x 3)
Weighted Score
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
WS = (25 x 4) + (20 x 3) + (20 x 3)
Weighted Score
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
WS = (25 x 4) + (20 x 3) + (20 x 3) + (15 x4) + (10 x 1) + (10 x 5)
Weighted Score
LocatioLocationnHealth-WatchHealth-WatchNorth
Erie
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
State College
Location Factor Weight Score
Total Patient miles per month 25 4Facility utilization 20 3Average time per emergency trip 20 3Expressway accessibility 15 4Land and construction costs 10 1Employee preference 10 5
WS = 340
Weighted Score
LocatioLocationnHealth-WatchHealth-Watch
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
Euclidean distanceEuclidean distance
dAB = ( xA - xB )2 + ( yA - yB )2
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
Euclidean distanceEuclidean distance
dAB = (50 - 175 )2 + (185 - 100 )2
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
Euclidean distanceEuclidean distance
dAB = (50 - 175 )2 + (185 - 100 )2
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
Euclidean distanceEuclidean distance
dAB = 151.2 miles
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
Rectilinear distanceRectilinear distance
dAB = | xA - xB | + | yA - yB |
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
Rectilinear distanceRectilinear distance
dAB = | 50 - 175 | + | 185 - 100 |
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
Rectilinear distanceRectilinear distance
dAB = | 50 - 175 | + | 185 - 100 |
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
Rectilinear distanceRectilinear distance
dAB = 210 miles
LocatioLocationnHealth-WatchHealth-WatchErie
A(50, 185)
PittsburghHarrisburg
Philadelphia
Scranton
Uniontown
North
0
50
100
150
200
y (
miles)
x (miles)50 100 150 200 250 300
East
State CollegeB (175, 100)
151.2 miles151.2 miles
210 miles210 miles
LocatioLocationnHealth-WatchHealth-Watch
LocatioLocationnHealth-WatchHealth-Watch
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22
5.5 - 2.5 = 35.5 - 2.5 = 3
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22
5.5 - 2.5 = 35.5 - 2.5 = 34.5 - 4.5 = 04.5 - 4.5 = 0
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3
5.5 - 2.5 = 35.5 - 2.5 = 34.5 - 4.5 = 04.5 - 4.5 = 0
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66
2 * 3 = 62 * 3 = 6
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66EE (8, 5)(8, 5) 1010
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66EE (8, 5)(8, 5) 1010 2.5 + 0.5 = 3 2.5 + 0.5 = 3
8 - 5.5 = 2.58 - 5.5 = 2.55 - 4.5 = 0.55 - 4.5 = 0.5
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66EE (8, 5)(8, 5) 1010 2.5 + 0.5 = 32.5 + 0.5 = 3 3030
10 * 3 = 3010 * 3 = 30
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
CensusCensus Population Population DistanceDistanceTractTract ((xx,,yy)) ((ll)) ((dd)) ldld
AA (2.5, 4.5)(2.5, 4.5) 22 3 + 0 = 33 + 0 = 3 66EE (8, 5)(8, 5) 1010 2.5 + 0.5 = 32.5 + 0.5 = 3 3030
LocatioLocationnHealth-WatchHealth-Watch
(a) Locate at C (5.5, 4.5)(a) Locate at C (5.5, 4.5)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
TractTract ldldAA 66BB 2525CC 00DD 2121EE 3030FF 8080GG 7777
TotalTotal239239
LocatioLocationnHealth-WatchHealth-Watch
(b) Locate at F (7, 2)(b) Locate at F (7, 2)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
LocatioLocationnHealth-WatchHealth-Watch
(b) Locate at F (7, 2)(b) Locate at F (7, 2)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
LocatioLocationnHealth-WatchHealth-Watch
(b) Locate at F (7, 2)(b) Locate at F (7, 2)
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
TractTract ldldAA 1414BB 2525CC 4040DD 1414EE 4040FF 00GG 3535
TotalTotal168168
LocatioLocationnHealth-WatchHealth-Watch
Alternative LocationsAlternative Locations
North
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
LocatioLocationnHealth-WatchHealth-Watch
Alternative LocationsAlternative Locations
North
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
391
355
331
326
283
247
223
233
197
173
253
233
228168218
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles)
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22BB (2.5, 2.5)(2.5, 2.5) 55CC (5.5, 4.5)(5.5, 4.5) 1010DD (5, 2)(5, 2) 77EE (8, 5)(8, 5) 1010FF (7, 2)(7, 2) 2020GG (9, 2.5)(9, 2.5) 1414
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55BB (2.5, 2.5)(2.5, 2.5)CC (5.5, 4.5)(5.5, 4.5)DD (5, 2)(5, 2)EE (8, 5)(8, 5)FF (7, 2)(7, 2)GG (9, 2.5)(9, 2.5)
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5)CC (5.5, 4.5)(5.5, 4.5)DD (5, 2)(5, 2)EE (8, 5)(8, 5)FF (7, 2)(7, 2)GG (9, 2.5)(9, 2.5)
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5)CC (5.5, 4.5)(5.5, 4.5)DD (5, 2)(5, 2)EE (8, 5)(8, 5)FF (7, 2)(7, 2)GG (9, 2.5)(9, 2.5)
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
TotalsTotals 6868 453.5453.5205.5205.5
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
TotalsTotals 6868 453.5453.5205.5205.5
x* =
y* =
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
TotalsTotals 6868 453.5453.5205.5205.5
x* =
y* =
453.568
205.568
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
TotalsTotals 6868 453.5453.5205.5205.5
x* =
y* =
453.568
205.568
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) CensusCensus Population PopulationTractTract ((xx,,yy)) ((ll)) lxlx lyly
AA (2.5, 4.5)(2.5, 4.5) 22 55 99BB (2.5, 2.5)(2.5, 2.5) 55 12.512.5 12.512.5CC (5.5, 4.5)(5.5, 4.5) 1010 5555 4545DD (5, 2)(5, 2) 77 3535 1414EE (8, 5)(8, 5) 1010 8080 5050FF (7, 2)(7, 2) 2020 140140 4040GG (9, 2.5)(9, 2.5) 1414 126126 3535
TotalsTotals 6868 453.5453.5205.5205.5
x* = 6.67
y* = 2.96
LocatioLocationnHealth-WatchHealth-Watch
Center of Gravity ApproachCenter of Gravity Approach
North
B
A CE
GFD
(2.5, 4.5) [2]
(2.5, 2.5) [5] (5, 2)
[7](7, 2) [20]
(9, 2.5) [14]
(8, 5) [10]
(5.5, 4.5) [10]
x (miles) East1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
0
yy (
miles)
(m
iles) x* = 6.67
y* = 2.96
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
For 20,000 unitsFor 20,000 units
Total Variable CostsTotal Variable Costs
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
For 20,000 unitsFor 20,000 units
Total Variable CostsTotal Variable Costs
$62 (20,000)$62 (20,000)
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
For 20,000 unitsFor 20,000 units
Total Variable CostsTotal Variable Costs
$62 (20,000) = $1,240,000$62 (20,000) = $1,240,000
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62 $1,390,000$1,390,000BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
For 20,000 unitsFor 20,000 units
Total Variable CostsTotal Variable Costs
$62 (20,000) = $1,240,000$62 (20,000) = $1,240,000
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62 $1,390,000$1,390,000BB $300,000$300,000 $38$38CC $500,000$500,000 $24$24DD $600,000$600,000 $30$30
For 20,000 unitsFor 20,000 units
Total Variable CostsTotal Variable Costs
$62 (20,000) = $1,240,000$62 (20,000) = $1,240,000
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Variable CostsVariable Costs Total CostsTotal CostsCommunityCommunity per Yearper Year per Unitper Unit (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $62$62 $1,390,000$1,390,000BB $300,000$300,000 $38$38 $1,060,000$1,060,000CC $500,000$500,000 $24$24 $ 980,000$ 980,000DD $600,000$600,000 $30$30 $1,200,000$1,200,000
For 20,000 unitsFor 20,000 units
LocatioLocationn
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
An
nu
al cost
(th
ou
san
ds o
f d
ollars
) Break-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Total CostsTotal CostsCommunityCommunity per Yearper Year (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $1,390,000$1,390,000BB $300,000$300,000 $1,060,000$1,060,000CC $500,000$500,000 $ 980,000$ 980,000DD $600,000$600,000 $1,200,000$1,200,000
LocatioLocationn
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
An
nu
al cost
(th
ou
san
ds o
f d
ollars
) Break-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Total CostsTotal CostsCommunityCommunity per Yearper Year (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $1,390,000$1,390,000BB $300,000$300,000 $1,060,000$1,060,000CC $500,000$500,000 $ 980,000$ 980,000DD $600,000$600,000 $1,200,000$1,200,000 A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
(20, 980)
LocatioLocationn
A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
(20, 980)
A best
Break-even pointBreak-even point
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
An
nu
al cost
(th
ou
san
ds o
f d
ollars
) Break-Even AnalysisBreak-Even Analysis
Fixed CostsFixed Costs Total CostsTotal CostsCommunityCommunity per Yearper Year (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $1,390,000$1,390,000BB $300,000$300,000 $1,060,000$1,060,000CC $500,000$500,000 $ 980,000$ 980,000DD $600,000$600,000 $1,200,000$1,200,000
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
B best
Break-even pointBreak-even point
A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
(20, 980)
A best
6.25
Break-even pointBreak-even point
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
An
nu
al cost
(th
ou
san
ds o
f d
ollars
)Fixed CostsFixed Costs Total CostsTotal Costs
CommunityCommunity per Yearper Year (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $1,390,000$1,390,000BB $300,000$300,000 $1,060,000$1,060,000CC $500,000$500,000 $ 980,000$ 980,000DD $600,000$600,000 $1,200,000$1,200,000
14.3
C best
(20, 980)
B best
Break-even pointBreak-even point
LocatioLocationn
A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
A best
6.25
Break-even pointBreak-even point
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
An
nu
al cost
(th
ou
san
ds o
f d
ollars
) Break-Even AnalysisBreak-Even Analysis
14.3
Fixed CostsFixed Costs Total CostsTotal CostsCommunityCommunity per Yearper Year (Fixed + Variable)(Fixed + Variable)
AA $150,000$150,000 $1,390,000$1,390,000BB $300,000$300,000 $1,060,000$1,060,000CC $500,000$500,000 $ 980,000$ 980,000DD $600,000$600,000 $1,200,000$1,200,000
LocatioLocationnBreak-Even AnalysisBreak-Even Analysis
Q (thousands of units)
0
200
400
600
800
1000
1200
1400
1600
2 4 6 8 10 12 14 16 18 20 22
A best B best C best
Break-even pointBreak-even point
6.25 14.3
A
DBC
(20, 1390)
(20, 1200)
(20, 1060)
(20, 980)
An
nu
al cost
(th
ou
san
ds o
f d
ollars
)
Break-even pointBreak-even point