Facility location strategies Case Study Example | Topics and Well Written Essays - 750 words

Facility side strategies - Case Study ExampleFacility location in a central place does not mean it should be located centr everyy literally. It means locating it in a place, which gives access to all the customers with minimum costs. Sometimes located a facility in a single area with many customers may lock out other customers collect to resulting distance that will arise. However, remember the objective of locating a facility is to serve all the customers.The process of finding the ideal place to locate a facility can be tricky. However, a number of methods have been used and they have proved successful. These methods include weighted load-distance method, centre of gravity, linear programming, weighted piles and break-even analysis (Suresh, 2009).This report will focus on using the weighted average method to locate the best place to put up a European facility for a US automobile company. The report took a number of location factors, which include location, geography, transportat ion, proximity to customers and the relative costs of supplying the goods to these destinations. In addition, these locations were ranked on a scale of 0 1 based on the said factors, depending on relative importance. After ranking, each location was thus scored on a scale of 0 100 and this also depended on how important the location was depending on the factors listed.