By Marta Abad

I came up with a new exercise about the topic of the first seminar. It combines both the Gravity Center Method and the Weighted Factor Average. Its aim is to show that you can use both simultaneously for the same case and benefit from the different perspectives it gives each of them.

For instance, I tried to join exercise number 1 with exercise number 2 (from seminar 1).
So, first you do exercise 2 as it says the instructions and then, when it comes to exercise 1, what you want to do is use the data from this exercise as if the distribution centers where located in each of the cities from exercise 2. In order to do this, note that you’ll have to eliminate distribution center number 5, since we have 5 distribution centers and only 4 cities. As a result, you are joining information from distribution center 1 as if it was located in the City A, and so forth.

As a consequence, you can see that each of the four cities, where the distribution centers are located, are analysed in two ways: one, using sales volume and the coordinates of the existing distribution centers and the other, measuring the importance of attributes of each possible location. In the first you find the point where you would locate exactly the distribution center (among the existing ones) whereas in the second method you will have a winner between the possible locations you have (city A, city B….).

After this, you can compare the results and if it was real life, choose one of the methods, depending on which you think if more relevant: taking into account quantitative factors (as in the Gravity Center Method) or more qualitative factors (as in the Weighted Factor Average).

Hope it is useful for you as it was for me.


Solution of the exercise:
We see that according to exercise 1 (taking only into account sales volume), the center would be located near to the distribution center number 1 (graphic), whereas according to exercise number 2 (taking into account other factors, such as nearby suppliers among others), the center would be located at the center number 2 or city B because it has de highest factors’ score.

Marta Abad Exercise Solutions

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