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A Single Non-obnoxious Facility Location Selection for Utility Stores Corporation Using Center of Gravity and P-median Methods

The locational analysis is an important and strategic decision of any supply chain and logistic system. An efficient and adequate supply of goods from warehouses to stores or customers is critical to meeting service-level requirements in today's competitive environment. Many consumer goods organizations operating their business in different regions usually have one central warehouse and several stores. With the dynamic and abrupt increase in customers' demand, a warehouse's optimized location is crucial. This paper deter-mines an optimal location of a warehouse intending to mini-mize transportation costs. For analysis, the Center of gravity and p-median methods are applied to a case study of utility stores to optimize the warehouse location. Results show that the location achieved for the new warehouse is robust to two optimization criteria, i.e., the CoG and the p-median. Existing and new warehouse locations are compared in terms of trans-portation costs as well as a truckload. Moreover, the contour line technique is used to draw cost contour lines around an optimal location. The clubbing mechanism was also done for the timely delivery of goods to each store.