There are 6 existing plants which have a material movement relationship with a new plant. The existing plants have locations of (300,400), (500, 800), (1000, 700), (900, 200), (300, 750) and (1200, 500). The number of tons of materials transported per year from the new plant to various existing plants is 500, 900, 400, 900, 800 and 1600, respectively. Determine the optimum location for the new plant such that the distance moved in transporting the materials to the existing facilities is minimized. Use simple median model and center of gravity location approach explain mathematicallyexpand_more

While using the load distance method (L-D) to select the location of the plant, the suitable location to be selected is when ∑ (Load X Distance) is maximum for that site ∑ (Load X Distance) is minimum for that site ∑ (Load ÷ Distance) is maximum for that site ∑ (Load ÷ Distance) is minimum for that site

The purpose of the Center of Gravity (CG) method in plant location selection is To locate the plant where it can effectively serve the concentrated demand To identify the location that is closest to the raw material source To locate the plant where it can effectively serve the scattered demand To calculate the transportation costs to different markets

For selecting a location the _____ serves a solution as it minimises the distance between the facility and for future existing location. ans. Minimax Location Model Load Distance Method Weighted Factor Rating Method Transportation Problem

A paper manufacturer having two mills must supply weekly three printing plants with printingpaper. Mill 1 produces 350 tons of printing paper a week and Mill 2 produces 550 tons perweek. Plant 1 requires 300 tons of paper per week, Plant 2 requires 400 tons and Plant 3requires 200 tons. The shipping costs, in £ per ton, are given in the following table below.Plants1 2 3Mill 1 : 17 22 15Mill 2 : 18 16 12a) Find a feasible solution (shipping schedule) using the Northwest Corner approach and itscost.[4 Marks]b) Formulate the problem as an LP.[5 Marks]c) Consider the following analysis:It costs £1/ton less to supply Plant 1 from Mill 1 instead of Mill 2. However, supplying Plant 2from Mill 2 saves £6/ton, and supplying Plant 3 from Mill 2 saves £3/ton. The greatestrelative savings comes from supplying Plant 2 as much as possible from Mill 2.Following this argument, find the optimum shipping schedule and its cost.

The magnitude of the transportation costs in a production process of a given land use anothe relative sensitivity of these transportation costs to distance from the city centerdetermine: O a. The optimal size of the buildings in the area. O b. The optimal distance from the city centre. O c. The ease of transportation. O d. The slope of the bid-rent function. O e. The cost of real estate taxes.