Operations Management Case Study (Mark: 40%)
Operations Management Case Study (Mark: 40%)
Operations Management Case Study (Mark: 40%)
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S. No. Location Factor Factor Rating
Rating Location 1 Location 2
1. Facility utilization 0.3 45 40
2. Total patient per month 0.1 50 56
3. Average time per emergency trip 0.2 70 65
4. Land and construction costs 0.25 60 65
5. Employee preferences 0.15 80 75
ILLUSTRATION 3: The new Health-care facility is targeted to serve seven survey tracts in
East Hararghie zone. The table given below shows the coordinates for the centre of each survey
tract, along with the projected populations, measured in thousands. Customers will travel from
the seven survey tract centres to the new facility when they need health-care. Two locations
being considered for the new facility are at (3.5, 5.5) and (6, 3), which are the centres of survey
tracts B and D. Details of seven survey tract centres, co-ordinate distances along with the
population for each centre are given below. If we use the population as the loads and use
rectilinear distance, which location is better in terms of its total load-distance score?
S. No. Centre of (X,Y) Population
survey (000)
1. A (6, 5.5) 5
2. B (3.5, 5.5) 15
3. C (5, 6) 10
4. D (6, 3) 20
5. E (8, 10) 3
6. F (4, 6) 6
7. G (2, 4) 4
ILLUSTRATION 4: Assume that XY company plan to select the common center for existing
seven plants. Base on the information given in the table below, to where the common center to
locate? (Use Center of gravity).
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S. No. Location of existing Distance Volume
Plants (miles) (ton)
1. A 200 5
2. B 500 3
3. C 700 5
4. D 300 3
5. E 500 7
6. F 250 5
7. G 600 4