Load Distance Analysis

Presented by: Maria Diorella A. Paguio

Load Distance Analysis

Location analysis technique useful in comparing alternative layouts to identify the one with the least product or material travel time per period. Helps to minimize transportation costs by evaluating alternative layouts on the basis of the total of the product of actual distance moved and the load the units moved for each layout alternative.

Load-Distance Technique
Compute (Load x Distance) for each site

Choose site with lowest (Load x Distance)

Distance can be actual or straight-line

The layout with the lowest is the best choice.

Load-Distance Calculations
LD =
where, LD = load-distance value load expressed as a weight, number of trips or units being shipped from proposed site and location i distance between proposed site and location i (xi - x)2 + (yi - y)2

ld
i

i=1
li =
di di = =

where, (x,y) = coordinates of proposed site (xi , yi) = coordinates of existing facility

Load-Distance
Potential Sites Site X 1 360 2 420 3 250 Suppliers B C 100 250 500 600 105 135

Y 180 450 400

X Y Wt

A 200 200 75

D 500 300 60

Compute distance from each site to each supplier Site 1 dA = (xA - x1)2 + (yA - y1)2 = (200-360)2 + (200-180)2 = 161.2 = (100-360)2 + (500-180)2 = 412.3

dB = (xB - x1)2 + (yB - y1)2 dC = 434.2

dD = 184.4

Load-Distance
Site 2 dA = 333 dB = 323.9 dC = 226.7 dD = 170 dD = 269.3 Site 3 dA = 206.2 dB = 180.3 dC = 200
Compute load-distance

LD =

ld
i

i=1

Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063 Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,789 Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*

* Choose site 3

Load-Distance With Excel

=B7*C11+C7*C12+D7*C13+E7*C14

Load-Distance With OM Tools

Reference:
Reid, R., & Sanders, N. R. (2010). Operations Management. Wiley. http://www.expertsmind.com

END OF PRESENTATION