7.3  Finding the Best Location for a Warehouse

As we saw in the previous activity, there are many factors that go into a location decision. However, once the general region has been selected based on the factors that influence facility location, then a more detailed study has to be conducted to select the best site.

In this case study, the general region has been determined, and now it is your job to find the lowest cost location for your company.

Case Study Details

Find the Best Facility Location

Your boss has given you the task of recommending a location for a new warehouse in the country of Luxembourg. Your company is a wholesaler of fruit and needs to supply all of the stores of a major food chain in Luxembourg. Currently, all of the shipments of fruit comes out of the warehouse located in Germany and must travel into Luxembourg via the A1 motorway (interstate/autobahn), however, this road is often very busy and many delays typically occur. Therefore, to provide better customer service and reduce transportation costs and time the CEO wants to know where the best location in Luxembourg would be for a new warehouse.

You are provided a map of Luxembourg and the following daily shipment data by location. From this, you will need to calculate the best location based on the center-of-gravity approach.

For this assignment, you need to be as accurate as possible. If a location falls in the middle between the 1 and the 2 lines, you need to use 1.5 as your y or x location, (or 1.4 or 1.6 – whichever is closest).

Daily Shipment Data

Shipping Data

Map of Luxembourg

Luxembourg Map (PPTX Download Luxembourg Map (PPTX)

Deliverable – Video Presentation

Video Presentation

Since you will not be able to meet your boss in person next week due to his travel schedule, generate a 2-3 minute professional video presentation outlining the process you used and the results. Make sure the video is of high quality since your boss may forward it to the company CEO.

Use ‘Studio’ with PowerPoint^® slides to create your video presentation. Review the information on the Presentation Guide for assistance.

Submission

Using Studio, record and save your presentation using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters.