Lecture Eight: Facility location

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    Facility Location

    Professor Dah-Chuan Gong

    October 2014

    Course Focus

    Single FacilityLocation Problems

    Rectilinear and

    Product Design-- QFD

    Flow Systemsand Clustering

    Methodology (GT)

    Systematic Layout Planning

    Facility Facility Material Handling Equipment

    Process Design CRAFT andBLOCPLAN

    Location Layout WarehouseOperations Automated Storage and

    Retrieval System

    Material Handling(Facility Planning)

    MaterialHandlingWarehouse Sizing

    and Layout

    Order Pickin Anal sis

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    Conveyor Systemand AGVS

    2

    Introduction (Location-Allocation)

    Location Problems: involve determining the location of one or morenew ac es n one or more o severa po en a s es. e cos olocating each new facility at each of the potential sites is assumed to beknown. It is the fixed cost of locatin a new facilit at a articular siteplus the operating and transportation cost of serving customers from thisfacility-site combination.Allocation Problems: assume that the number and location of facilitiesare known a priori and attempt to determine how each customer is to be

    . ,center, the production or supply capacities at each facility, and the costof serving each customer from each facility, the allocation problem

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    determines how much each facility is to supply to each customer center.

    3

    Introduction (Location-Allocation)

    -much each customer is to receive from each facility but also thenumber of facilities along with their locations and capacities.

    Location Allocation

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    Risdy Furnitures Logistics Problem

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    RisdiyonoRisdiyono ID: 107988ID: 1079885

    Risdy Furnitures Logistics Problem

    Summary result of the total cost for five alternatives

    DC Gong 6

    Planar Single-Facility Location Problems

    Minisum Location Problem with Rectilinear Distances

    Minisum Location Problem with Euclidean Distances

    Minimax Location Problem with Rectilinear Distances

    Minimax Location Problem with Euclidean Distances

    DC Gong 7

    Example: Tyler Emergency Medical Services (EMS)

    ,are shown on the following map.

    The o ulation densit for each of the cit s tracts is also shown.The darker red areas have up to 5,000 people per square mile.

    The southeast part of Tyler, census tract 18.03, has experiencedrapid growth, with its population almost doubling in the lasttwelve years.

    e res en s o s rac ave comp a ne a a es oo ongfor the EMS vehicles to reach them.

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    Population Density of Tyler,Texas

    Areas of rapid growth.

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    Gary Lin 9

    Example: Tyler Emergency Medical Services (EMS)

    A general guideline for locating EMS facilities in urban areas

    is that an EMS vehicle should be able to answer 95 percentof its calls within 10 minutes in tracts that have a populationdensit of 1 000 eo le er s uare mile.

    Census tract 7, on the west side of the city with apopulation density of 967 people per square mile, shouldbe included in the study as well.

    Thus, the census tracts that are as dark as or darker than

    census rac , s ou e w n a -m nu e r ve mezone of an EMS facility.

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    coverage goals for Tyler?

    10

    Census Track 7

    10 minuteresponse

    zones

    With MapPoint, it is easy to calculate ar ve me zone y us seec ng e

    pushpin and going under Tools on the

    menu bar to select drive time zone interms of the number of minutes of drive

    Some areas not incovera e zone.

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    time..

    Gary Lin 11

    Three EMS locationswere chosen through atrial and error approachand evaluation using

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    .

    Gary Lin 12

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    Minisum Examples

    , ,station, or library in a metropolitan area

    Locate a dock in a warehouse for purpose of loading

    Locate a copy machine in a library

    DC Gong 13

    Minisum location problem

    .machine (or facility) receives parts from existing machines (orfacilities) and supplies parts to existing machines. There is ao a cos o mov ng par s o an rom e new mac ne. o a

    cost depends on the location of the new machine.

    cost.

    DC Gong 14

    Notation

    m = the number of existing machines i i, i

    X = the location of new machine = (x, y)t = the number of trips per month between P and Xd(X, P i) = the distance between X and P itid(X, P i) = total distance items travel per month to and from X and P ivi= the average velocity of items traveling to and from the two machines (Xand P i)t/v d X, P = the total travel time er month between the two machines

    ci = the cost per unit time (hour) of travel between the two machines

    (citi/vi)d(X, P i) = the cost per month involving the two machines

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    = wid(X, P i), where w i = c i(ti/vi)

    15

    The total cost of movement between the new machine and all theexisting machines

    = f(X) A minisumlocation problem

    ==m

    =i i i m m

    1

    ,,...,

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    ==++= i i i m m P X d w P X d w P X d w X f 111 ),(),(...),()(

    P 3P

    P 1

    X

    P 2 P 5

    DC Gong 17

    Majority Theorem

    When one weight constitutes a majority of the total weight, anop ma new ac y oca on co nc es w e ex s ng ac ywhich has the majority weight.

    ,general class of distances (Lp) including rectilinear distances.

    DC Gong 18

    Major Types of Distances

    Rectilinear distance (Manhattan distance, Right-angle distance,ec angu ar s ance

    Euclidean distanceChebyshev distance (or Tchebychev distance)

    Given 2 points , A (x1, y1) and B (x2, y2) in the space

    Lp = ( x1 x2 p y1 y2 p )1/p

    When p=1, Lp Rectilinear distance

    When p=2, Lp Euclidean distance

    When p= , Lp = max( x1 x2 , y1 y2 ) , Chebyshev

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    distance

    19

    Minisum Location Problem with Rectilinear Distance

    X = (x, y) and Pi = (ai , bi )

    )()()(),()( y f x f b y a x w y x f X f m

    i i i i 21

    1

    +=+== =

    where and=

    =m

    i i i a x w x f

    11 )()(

    =

    =m

    i i i b y w y f

    12 )()(

    We can minimize the total cost of movement by solving

    of movement in the x direction and minimizing the cost

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    .

    20

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    Example 1

    Suppose that a conveyor line is being planned to run into aware ouse. e ne w eg n a e po n , a coor na es arein units of tens of feet) and run parallel to the x-axis into thewarehouse. Items entering the warehouse on the line are picked upat the end of the line and transported directly to one of the truckdocks at the points P1=(7,10), P2=(15,7), P3=(15,3), and P4=(12,0).

    e o a annua cos per or ranspor ng ems e ween eend of line and points P1 through P4 will be $160, $40, $60, and$140, respectively. The equivalent annual cost per 10 ft of conveyoris $180.Find the length of the conveyor so as to minimize the total cost.

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    Example 1(continued)

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    Example 1: Data and Cost Function

    wi 160 40 60 140 180

    Pi (7,10) (15,7) (15,3) (12,0) (0,5)

    1510012140716001801 +++=)( x x x x x f 1700516024001802605140522 =++++== )()()()()()()( f y f

    Method 1-- Apply the majority theorem (median condition)

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    Example 1: Method 2-- Check on the slope changes

    The coefficient of x in any The minimizing point is x=7,

    points is the sum of the

    weights of the points to the leftof x minus the sum of the

    1 =

    weights of the points to theright of x.

    ,but the first is the sum of theslope of the previous interval(from left to right) and twicethe weight of the point

    common to both intervals.-220=-580+2(180),

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    100= -220+2(160)

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    Example 1: MathCAD Graph(different data set)

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    Example 2: Contour Line Method

    Minimize the function f(X) for which there arem =4 existing

    facilities, with locations P1=(4,2), P2=(8,5), P3=(11,8), and P4=(13,2),with weights 1, 2, 2, and 1, respectively.

    We normalize the weights by dividing by their sum (6) to obtain1/6, 1/3, 1/3, and 1/6, respectively.

    wi 1/6 1/3 1/3 1/6

    i, , , ,

    DC Gong 26

    Example 2: Contour Line Method(continued)

    Contour line (or called levelne : every po n on e

    contour line has the samevalue of the function f.Contour set (level set): eachcontour set whoseoun ary s a con our ne,

    is the set of all pointshaving values of f(X) nolonger than those of the

    points on the contour line.

    DC Gong 27

    852

    131184111

    61

    31

    31

    61

    1

    ++=

    +++=

    f

    x x x x x f )(

    The slope of every contour line passing through a box B is the negativeratio of the bottom margin x coefficient to the left margin y coefficient.

    3

    2

    =

    3

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    13

    =

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    Optimum location

    The contourThe contourline passesP1=(4,2)line passesP1=(4,2)

    P1

    What is the value ofthis contour line?

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    Contour Lines for Three Simple Rectilinear Location

    Observations?

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    Contour Line Construction Procedure

    1. Pass a horizontal line and a vertical line through each existing.

    leftmost and beyond the rightmost existing facility location.

    Similarly, each vertical line should extend beyond thebottommost and beyond the topmost existing facility location.

    2. For each vertical line, total the weights of the existing facilities.

    3. For each horizontal line, total the weights of the existingfacilities l in on the line and write the total at the left of theline.

    4. The vertical lines partition the plane into columns. For each

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    column, compute the coefficient of x and write the coefficient inthe bottom margin.

    31

    Contour Line Construction Procedure (continued)

    5. The horizontal lines partition the plane into rows. For each row,

    margin.

    6. The slope for every contour line passing through a given box is thenegative ratio of the number in the bottom margin to the number inthe left margin.

    . se e s ng e con our ne cons ruc on me o o con uc acontour line through each point of interest.

    . reduced. Then, the optimum location is obtained.

    9. Alternativel to determine those oints that minimize f X either

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    identify the points where the margin numbers change from negativeto nonnegative or else, equivalently, use the median conditions..

    32

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    Example 3(p521)

    DC Gong 33Tompkins et al.

    Example 3( continued) p521

    DC Gong 34Tompkins et al.

    Example 3( continued) p521

    DC Gong 35Tompkins et al.

    Example 3( continued) p521

    DC Gong 36Tompkins et al.

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    Minisum Location Problem with Squared EuclideanDistance =++=

    m

    P X d w P X d w P X d w X f ...

    Ob ective Function

    =i 1

    ( ) ( )[ ]2i2im

    i byaxw)y,x(f Minimize += =

    ( ) ( )[ ] byaxw)y,x(f 2i2im

    1ii

    += =

    ( ) ( ) bywaxw 2im

    1ii

    2i

    m

    1ii +=

    ==

    yx 21 +=2

    m

    = 2

    m

    bwf =

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    i1i

    i1= 1i=

    37

    Minisum Location Problem with Squared EuclideanDistance continued

    Since f x and f are se arable the o timal solution of

    f 1(x) is independent of the optimal solution of f 2(y).Note both f x and f are convex functions. Thus theoptimal x* and y* that minimize f 1(x) and f 2(y) can beobtained by setting the first derivatives equal to zero.

    m m

    0axw2dx i1ii

    1

    == = ( )2

    1 2 0i i

    i w y bdy == =

    DC Gong 38

    Minisum Location Problem with Squared EuclideanDistance continued

    * *f 1(x) and f 2(y) can be obtained as following:

    m

    i iw a m

    i iw bm

    i

    xw

    =

    m

    i

    yw

    ==

    It is also called acentroid problem .

    = =

    DC Gong 39

    Example 4

    ,problem (i.e., a minisum location problem with

    wi 1 1 1 1

    .

    Pi (0,0) (0,10) (5,0) (12,6)

    (x*, y*) = (4.25, 4.0)

    DC Gong 40

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    Minisum Location Problem with Euclidean Distance

    2 2( , )

    m

    Minimize f x y w x a y b= + 1

    1/22 2

    i

    m

    i i iw x a y b

    =

    = +

    Since f 1(x) and f 2(y) are not separable, the optimal solution

    1i=

    of f 1(x) is dependent of the optimal solution of f 2(y).

    DC Gong 41

    Minisum Location Problem with Euclidean Distance

    The graph of is a cone (strictly convex[(x a ) (y b )i 2 i 2 + ]12

    function).

    contours[(x a ) (y b )i

    2i

    2 + ]12 y

    (ai, bi)

    a, b, 0

    x

    y

    m2 2

    12

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    ,

    convex hull is a line segment.

    i i ii=1

    42

    Minisum Location Problem with Euclidean Distance

    First order o timalit conditions :

    * *f x f x, ,x

    =y

    =

    Any point where the partial derivatives are zero is optimal.Let

    ( ) ( )2 2 1/2

    ( , )

    [ ]

    ii

    i i

    wx y

    x a y b

    = +

    DC Gong 43

    Minisum Location Problem with Euclidean Distance

    1/2m wf

    1

    22

    i i ii

    m

    x a y b x ax =

    = +

    1

    ,i ii

    x y x a =

    = =

    1

    ( , )m

    i ii

    a x y ==

    1

    ( , )m

    ii

    x y =

    DC Gong 44

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    Minisum Location Problem with Euclidean Distance

    1/22 2m wf

    1 2

    i i ii

    m

    x a y yy =

    = +

    1

    ,i ii

    x y y =

    = =

    1

    ( , )m

    i ii

    b x y ==

    1

    ( , )m

    ii

    x y =

    DC Gong 45

    Minisum Location Problem with Euclidean Distance

    If we ut the two artial derivatives into a two-tu le we et

    the gradient of f evaluated. ==> a general formm=

    1i=

    .( )

    ( ) ( ) 0m m

    ii i i

    XX X X P X P

    = =

    = =

    DC Gong 46

    Minisum Location Problem with Euclidean Distance--

    (0)

    .

    Step 1: Define and let n=01

    ( )( )

    ( )

    mi

    ii

    XWF X P

    X

    =

    =

    Step 2: Solve WF (X (n )) and letX (n+1 )= WF (X (n ))

    Step 3: If d(WF (X (n )), WF (X (n+1 ))) , then STOP

    X (n ) is the solution

    otherwise let n = n+1 and o to Ste 2.

    Alternatively, replaced( WF (X (n )), WF (X (n+1 ))) by( 1) ( 1) ( ) ( )n n n n+ +

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    , ,

    47

    Minisum Location Problem with Euclidean Distance--

    this algorithm is to perturb the problem as follows:replace

    ( ) ( )1/22 2

    ( , )i i id X P x a y b = + by

    ( ) ( )1/22 2

    ( , )i i id X P x a y b = + +

    Weiszfelds Algorithm Example (R1, p208)

    DC Gong 48