A Spreadsheet Approach to Locating Facilities
While the center of gravity method provides an optimal solution for minimizing distribution cost the resulting i very often unrealistic. The location chosen b) this Facility Decisions: Location and Capacity 303 method might be in a residential neighborhood, or may not have access to major highways or may likely already be occupied by another business. (It does, however. provide a good starting point for searching for a location.) A more realistic approach to selecting a site, therefore. is to identify several sites that are both available and also meet the requirements of the firm. Each site is then evaluated using the same criteria as in the center-of-gravity approach. that is. to minimize the total costs of distribution. However. unlike the center of gravity approach which has an infinite number of solutions, this approach will be limited to a choice among the sites selected for evaluation .