Centre of gravity method of location planning

1. 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.

2. Centre of Gravity method
Finds location of distribution centre that minimizes distribution costs.
It considers :

3. Grid map of Target marketGrid map of Target market

4. Centre of Gravity method
To ascertain an appropriate location for the New facility

5. 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

6. Load- Distance methodLoad- Distance method
An 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.

7. Load-Distance method
Evaluates 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 :

8. 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.

9. 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
SitesX Y
1 360180
2 420450
3 250400

10. Thank you Thank you 