MGT 2070 Lecture Notes - Cartesian Coordinate System, Operations Management
Document Summary
Hub-and-spoke structure: point to point system. No guarantee of arrival of package or time of delivery: hub-and-spoke technology. Match plane types to size of loads for each route. Location break-even analysis example: first calculate break-even point (bep) to rule out options, then calculate total cost (tc, when determinate figures are not available, we reach a range to see what is the best option. 2500, choose chicago: pom-qm use location module. Factor rating example: weights do not need to add up to 1, but is useful, weighted scores are very close, so we should test the extremes in a real world example. Center of gravity method: finds location of single distribution center serving several destinations. Cannot be used for large distances (not across canada, or even united states). Place existing locations on a coordinate grid using cartesian coordinate pairs. Calculate x & y coordinates for center of gravity". Decision variables: connect sources to all destinations.
