Question
Center of Gravity Method Store location X coordinate Y coordinate Product Sold Uttara 125 150 3000 Jatrabari 250 75 2750 Savar 300 450 3500 Gulshan
- Center of Gravity Method
Store location | X coordinate | Y coordinate | Product Sold |
Uttara | 125 | 150 | 3000 |
Jatrabari | 250 | 75 | 2750 |
Savar | 300 | 450 | 3500 |
Gulshan | 350 | 200 | 1000 |
Yusuf Bakery currently have four store locating in above places. Each store made their own baked products. Individual store separately procure their raw materials to serve the demand for fresh and final baked goods. This separate process act increase confusion about product quality and test among the consumers. They start comparing the baked goods based on the locations. Therefore, to eliminate this brand confusion owner decided to open central commissary.
Question: So, as a supply chain consultant, how would you suggest finding the optimal location for the Central commissary?
- Break Even Analysis
A company decided to manufacture computer accessories at their production facilities. They have well facilitated and equipped production plant in 3 areas. They want to analyze meticulously where there production cost will reach the break-even point fast. Thus, they write down detail cost structure of three different areas, are as follows:
location | Fixed cost | Variable cost (Unit) |
Dhaka | 3,00,000 | 400 |
Chottogram | 2,00,000 | 200 |
Khulna | 1,00,000 | 300 |
Now, they have hired you to calculate the BEP for each location. For your clarity, they provide you hypothetical production unit of 5,000 unit and 20,000. These two value will help you to compare the cost pattern.
Question: find out the following
- Range of production volume, which each location is more suitable?
- Which one of the three is the best location at a production of 11,000 units?
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