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Determine the most appropriate position for a regional distribution center (DC) that delivers material to local hubs in 4 cities: Ipswish, Carindale, Sunnybank or Chermside.

Determine the most appropriate position for a regional distribution center (DC) that delivers material to local hubs in 4 cities: Ipswish, Carindale, Sunnybank or Chermside. Inbound deliveries for this operation are done manly via air freight. Outbound deliveries via road. Southeast Queensland has two major international airports: Brisbane and Gold Coast.

  1. Using the Non-Weighted Center of Gravity Method, what is the most appropriate position (city, or close to what city?). What airport would you use for inbound deliveries from suppliers? What other factor would you consider when assessing this particular location?
  2. Using the Weighted Center of Gravity Method, and considering the outbound shipment volume for each location, what is the most appropriate position (city or close to what city?). What airport would you consider to use for inbound deliveries from suppliers? What other factor would you consider when assessing this particular location?
  3. You are considering expanding the business to Gold Coast area (south-east Queensland, around 60km from Brisbane City). Accurate demand forecasting data is not available, but your sales team is optimism and have estimated a shipment daily volume of 7,000 units. What would be the most appropriate (estimated) position for your distribution center and what airport you would for inbound deliveries? As you do not have sufficient data, make an intuitive decision and justify.

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