Analytical Methods of Location Planning
The various analytical methods of location planning are affected by the way the distances are measured and the objective function is used.
The distance measure involved in a facility location problem is an important element in formulating an analytical model. There are two ways to measure the distance between two facilities.
When distance between two facilities is measured along path that is orthogonal to each other, then that distance is termed as rectilinear distance. Suppose two facilities are located at points represented by ( X 1 , Y 1 ) and at ( X 2 , Y 2 ) (figure 1), then the rectilinear distance between the facilities will be :
| X 1 - X 2 | + | Y 1 - Y 2 |
Figure 1: Rectilinear Distance
When distance is measured along straight-line path between the two facilities, then that distance is termed as Euclidean distance. Suppose two facilities are located at points represented by ( X 1 , Y 1 ) and at ( X 2 , Y 2 ) (figure 2), then the Euclidean distance between the facilities will be
Figure 2: Euclidean Distance
The whole family of distance measure ( D K ) for the distance between two points ( X 1 , Y 1 ) and ( X 2 , Y 2 ) is defined by the following formula:
Techniques of conducting a facility location study
The following techniques may be used for deciding the best location of a facility.
Factor rating method
The factor rating method is explained below by an example of deciding the best site out of the three proposed sites.
Table 1: Factor Rating Chart
The transportation problem is concerned with the distribution of goods or services from various sources to various destinations. The transportation problem can be formulated as a linear programming problem. The total transportation cost at various locations can be calculated and the location with the least total transportation cost can be chosen (Turner, W.C, et al., Introduction to Industrial and System Engineering, Second Edition, Prentice –Hall, Inc. New Jersey 1987).