CENTER OF GRAVITY Quain’s Discount Department Stores, a chain of four large Target-type outlets, has store locations in Chicago, Pittsburgh, New York, and Atlanta; they are currently being supplied out of an old and inadequate warehouse in Pittsburgh, the site of the chain’s first store. The firm wants to find some “central”

location in which to build a new warehouse.

APPROACH c Quain’s will apply the center-of-gravity method. It gathers data on demand rates at each outlet (see Table 8.5).

Its current store locations are shown in Figure 8.3. For example, location 1 is Chicago, and from Table 8.5 and Figure 8.3, we have:
x1 = 30 y1 = 120 Q1 = 2,000

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TABLE 8.5 Demand for Quain's Discount Department Stores STORE LOCATION Chicago Pittsburgh New York Atlanta NUMBER OF CONTAINERS SHIPPED PER MONTH 2,000 1,000 1,000 2,000