Localization of central warehouse, center of gravity method | Free template

Localization of central warehouse is a free template to determine where to place a central warehouse geographically to minimize distribution costs.

This template uses the center of gravity method to find the geographic location that provides the lowest distribution cost. The center of gravity method is a mathematical technique used to find the best location for a distribution center that serves several shops or areas. This method takes into account the location of the final destinations and the volume of goods to be transported to final destinations.

To use this template, you must first identify the final destinations and specify the volumes to be transported to these final destinations. Then, you place each final destination in a coordinate system so that each final destination gets an x-value and a y-value. We have as an example in this template Sweden as the coordinate system leading to an overall coordinate system of 0 to 1500 km for the y-value (south to north) and 0 to 400 km for the x-value (west to east). Kiruna, for example has a x-value of 190 and a y-value of 1400.

When all the final destinations have been listed with transport volumes and coordinates, you can see the best location for a central warehouse in the last row in the list, and as a point in a graph of the entire coordinate system. The location of the central warehouse is determined as the weighted average of x and y.

You can use this template to determine where to place a central warehouse geographically to minimize distribution costs. Updated: 01/01/2015 | Created by All-templates.biz

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Tags: localization strategy optimal location