Barycenter technique to locate Warehouse |
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To locate a warehouse, the barycentre technique -although not perfect- is commonly used to get a first idea of the possible warehouse location. Very mathematical, this technique is quite simple when you have access to a geocoding software We need to calculate the weighted average of latitude and longitude of each supplier/customer The process is the following: Get all addresses of suppliers and customers Geocode all suppliers and customers addresses Assign volumes to each flow (m3, palets, trucks…) Assign coefficient to each flow to give more or less importance to particular flows (expensive transport costs, quality matters, lead-time reduction to customers…) For 2 suppliers and 1 customer: Name | Address | Latitude | Longitude | Coefficient | Volume | Supplier1 | XX | Lat1 | Long1 | Coef1 | Vol1 | Supplier2 | XX | Lat2 | Long2 | Coef2 | Vol2 | Customer | XX | Lat3 | Long3 | Coef3 | Vol3 | Barycenter Latitude = ∑Coefi*Voli*Lati / ∑Coefi*Voli Barycenter Longitude = ∑Coefi*Voli*Longi / ∑Coefi*Voli
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