27. A company wants to locate a new warehouse to minimise total transportation miles to all customers. Which quantitative model is best?
Answer: B
Centre-of-gravity method
The centre-of-gravity method is the most suitable quantitative model for locating a new warehouse to minimize total transportation miles to all customers. This method calculates the optimal location based on the geographic coordinates of customer locations and their respective demand, effectively reducing transportation costs.
A) Factor-rating method
The factor-rating method is primarily used for evaluating and comparing different alternatives based on multiple criteria. While it can be useful in decision-making processes, it does not specifically focus on minimizing transportation distances, making it less appropriate for the scenario of locating a warehouse.
B) Centre-of-gravity method
The centre-of-gravity method directly addresses the goal of minimizing transportation miles by identifying a central point that minimizes the distance to all customer locations based on their demand. This makes it the most effective choice for determining the optimal warehouse location.
C) Brown-Gibson model
The Brown-Gibson model is not widely recognized as a standard method for warehouse location analysis. Its application is limited and does not specifically cater to minimizing transportation distances, rendering it unsuitable for the task at hand.
D) Transportation method of linear programming
The transportation method of linear programming is designed to optimize the distribution of goods from multiple suppliers to various consumers, focusing on cost minimization. While it can aid in logistics and transport planning, it does not specifically identify a location for a new warehouse like the centre-of-gravity method does.
Conclusion
The centre-of-gravity method is definitively the best option for minimizing total transportation miles, as it provides a direct calculation for optimal location based on customer demand and geographic distribution. Other methods, while valuable in different contexts, do not specifically target the goal of locating a warehouse to reduce transportation distances effectively.