The main goals of this chapter are to: Describe what a third-party logistics provider is, assess the major issues that need to be considered in locating a plant or warehouse facility, learn how a factor-rating system can be used to narrow potential location sites,. | Location, Logistics, and Distribution Chapter 14 Learning Objectives Describe what a third-party logistics provider is. Assess the major issues that need to be considered in locating a plant or warehouse facility. Learn how a factor-rating system can be used to narrow potential location sites. Set up the transportation model to analyze location problems and how to use Excel Solver to find solutions to these models. Understand the centroid method for locating entities such as cell phone communication towers. Logistics Logistics - the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities International logistics - managing these functions when the movement is on a global scale Third-party logistics company - an outside company used to manage all or part of another company’s logistics functions Logistics Decisions Multimodal solutions are the norm Warehouse Activities Facility Location Issues Facility Location . | Location, Logistics, and Distribution Chapter 14 Learning Objectives Describe what a third-party logistics provider is. Assess the major issues that need to be considered in locating a plant or warehouse facility. Learn how a factor-rating system can be used to narrow potential location sites. Set up the transportation model to analyze location problems and how to use Excel Solver to find solutions to these models. Understand the centroid method for locating entities such as cell phone communication towers. Logistics Logistics - the art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities International logistics - managing these functions when the movement is on a global scale Third-party logistics company - an outside company used to manage all or part of another company’s logistics functions Logistics Decisions Multimodal solutions are the norm Warehouse Activities Facility Location Issues Facility Location Issues Plant Location Methods Factor-Rating System Most widely used List of factors is developed Range of possible points assigned to each factor Each site is rated against each factor The sums of assigned points for each site are computed The site with the most points is selected Example – refinery location factors Linear Programming – Transportation Method Transportation method is a special linear programming method Seeks to minimize costs of shipping n units to m destinations or its seeks to maximize profit of shipping n units to m destinations A B 1 2 3 5 7 8 6 4 9 Example Example Excel: US Pharmaceutical Centroid Method Used for locating single facilities that considers existing facilities, the distances between them, and the volumes of goods to be shipped between them Assumes inbound and outbound transportation costs are equal Does not include special shipping costs for less than a full load This methodology involves formulas used to compute the coordinates of the .
