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Original Title: (30) Mathematical Models for Facility Location.ppt

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Facility Location

Prof Arun Kanda

Department of Mech Engg

Indian Institute of Technology, Delhi

A Case Study

Objective

Plant Location Problem

Objective of Location

material) from industrial waste

Plant

Industrial waste packaging material

Relevant Factors for Plant Location

Notation Factor

A Nearness to raw material source

B Availability and dependability

of power

C Transport facilities

D Labour supply

E Employee facilities

F Competition for the market

G Nearness to market

H Govt. Incentives

I Cost of land

Objectives

.

Weightages O1 O2 . On Measures of

to various (W1) (W2) (Wn) effectiveness of

objectives various alternatives

. n

A1 P11 P12 P1n E 1 P1 jW j

j 1

n

A2 P21 P22 P2n E 2 P 2 jWj

j 1

. . .

ALTERNATIVES

. . .

. . .

. . .

n

Am Pm1 Pm2 pmn Em PmjWj

j 1

Triangular Matrix

O2 O3 .. On Scores

O1 O1 - 2 S1

O2 S2

O3 On Sn

Applying Pareto Principle

B C D E F G H I

A A-2 A-1 A-3 A-3 F-1 A-2 A-2 A-3

B C-1 B-1 B-3 F-2 G-2 H-2 I-1

C C-1 C-3 F-2 G-1 H-1 C-1

D D-3 F-3 G-2 H-2 I-2

E F-3 G-3 H-3 I-3

Major difference = 3 F F-1 F-1 F-1

Medium difference=2 G H-2 I-1

Minor difference = 1 H H-2

SUMMARY

Notation Factor Total weightage

Points factor(%)

A Nearness to raw material source 16 23.0

B Availability and dependability of 4 5.7

power

C Transport facilities 6 8.6

D Labour supply 3 4.3

E Employee facilities 0 0.0

F Competition for the market 14 20.0

G Nearness to market 8 11.4

H Govt. Incentives 12 17.0

I Cost of land 7 10.0

Total 10 100

Decision Matrix for Alternative Locations

A B C D F G H I Total

Points

Alternative .230 .057 .086 .043 .200 .114 .170 .100

Location

Panipat 90 80 100 50 100 50 90 90 86.01

Sonepat 80 100 80 70 100 85 80 85 85.98

Rohtak 100 80 90 70 100 60 100 100 *91.16

Meerut 90 50 80 90 80 60 70 60 75.05

Faridabad 50 60 90 100 50 100 50 50 61.87

Gurgaon 55 65 50 60 100 95 60 70 71.26

Ghaziabad 60 50 80 100 60 90 50 60 64.60

* Optimal Location.

Normalization I

80

P

Points

20

L C H

Normalization II

D A

80

C1

Points

C2

20

B

L L H

Normalization III

80

Points

60

20

Normalization IV

On

.

Points

.

.

O2

O1

X1 X2 - - - - - - Xn

Mathematical Models for

Facility Location

Single Facility Location

New lathe in a job New airfield for a

shop number of bases

Tool crib in a factory Component in an

New warehouse electrical network

Hospital, fire station, New appliance in a

police station kitchen

New classroom Copying machine in a

building on a college library

campus New component on a

control panel

Problem Statement

m existing facilities at locations

P1(a1,b1), P2(a2,b2) Pm(am,bm)

New facility is to be located at point X (x,y)

d(X,Pi) = appropriately defined distance between

X and Pi

Euclidean, Rectilinear, Squared Euclidean

Generalized distance, Network

The objective is to determine the location X so

as to minimize transportation related costs

Sum (i=1,n) wi d(X,Pi), where wi is the

weight associated with the ith existing facility

(product of Cost/distance & the expected

number of annual trips between X and Pi)

Single Facility Location

P3 (w3)

Pn-1 (wn-1)

d(X,P3)

P2 (w2)

d(X,P2)

d(X,P n-1)

X

d(X,Pn)

d(X,P1)

P1 (w1)

Pn (wn)

Commonly Used Distances

Pi (ai,bi)

X (x,y)

Pi (ai,bi)

Euclidean : [ (x-ai)2 + (y-bi)2]1/2

Squared

Euclidean: [(x-ai)2 +(y-ai)2 ] X (x,y) Pi(ai,bi)

Other , Network

X (x,y)

Rectilinear Distances

Z = Total cost

= Sum (i =1,n) [ wi | (x-ai) + (y-bi)|]

= Sum (i=1,n) [wi |(x-ai)| + wi |(y-bi)| ]

= Sum (i=1,n) wi |(x-ai)| +

Sum (i=1,n) wi |(y-bi)|

= f1(x) + f2(y)

Thus to minimize Z we need to minimize

f1(x) and f2(y) independently.

Example 1

(Rectilinear Distance Case)

A service facility to serve five offices

located at (0,0), (3,16),(18,2) (8,18) and

(20,2) is to be set up. The number of cars

transported per day between the new

service facility and the offices equal 5, 22,

41, 60 and 34 respectively.

What location for the service facility will

minimize the distance cars are transported

per day?

Solution (x-coordinate)

Existing x- Weight Cumulative

facility coordinate weight

value

1 0 5 5

2 3 22 27< 81

4 8 60 87> 81

3 18 41 128

5 20 34 162

x* = 8

Solution (y-coordinate)

Existing y- Weight Cumulative

facility coordinate weight

value

1 0 5 5

2 16 22 102>81

4 18 60 162

y* = 16

Example 2

Squared Euclidean Case

CENTROID LOCATION

= 12.12

= 9.77

Rm

R2

m

P Mn

R1

2 m+n

M2

M1

1 m+2

m+1

Minimax Problems

emergency facilities

our objective would

be to minimize the

* maximum distance

Cost Contours

Increasing Cost

Cost Contours

help identify alternative

feasible locations

Summary

multiple objectives in Plant Location

(problem of choosing the best from options)

Single Facility Location Models

Rectilinear distance

Squared Euclidean

Euclidean distance

(to generate the best from infinite options)

Summary (Contd)

(Objective depending on the context)

Use of Cost Contours to accommodate

practical constraints

(Moving from ideal to a feasible solution)

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