(IE-02)-Capacity and Facilities Design

What is Facility Location?

Answer: Facility location refers to selecting the most appropriate geographical site for setting up a manufacturing unit, warehouse, or others business facility.

Question: Describe the Facility Location Models?

 Answer: There are three  Facility Location Models. Which are given below

1.  Center of Gravity Model
2. Transportation Model 
3. Break-Event Analysis

Center of Gravity Model:

 Identifies the optimal location by minimizing transportation costs based on supply and demand locations.

  Transportation Model:

Minimizes transportation costs while meeting supply and demand requirements.

 Break-Event Analysis:

Compares fixed and variable costs for different locations to find the most cost-effective option.