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The centre of gravity can give a reasonable location, but we can easily show one of itsweaknesses. Suppose you work in Alberta, Canada and want to deliver 20 tonnes of materials aday to Edmonton and 40 tonnes a day to Calgary. These two cities are connected by a straightroad 300 km long (see Figure 5.7). If the costs of getting deliveries from suppliers are the sameregardless of location, where would you build a warehouse?The centre of gravity is ((40 × 300 + 20 × 0)/60 = ) 200 km from Edmonton. A warehousehere would have to deliver 200 × 20 tonne/kilometres to Edmonton and 100 × 40 tonne/kilometresto Calgary, giving a total of 8000 tonne/kilometres. But if you built the warehouse inCalgary, you would only have to move 20 × 300 = 6000 tonne/kilometres to Edmonton. Thisgives one rule of thumb, which says that a good location is in the centre of highest demand.LOCATING FACILITIES 11701020304050607080901000 10 20 30 40 50 60 70 80 90 100Centre of gravityS3S1S2W1W2W3W4W5W6Figure 5.6 Locations for van Hendrick IndustriesFigure 5.7 Weakness of the centre of gravity method300km200km 100kmEdmonton Calgary20 tonnes Centre ofgravity40
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