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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Load–Distance Method

In every facility location analysis, attractive candidate locations must be identified and compared on the basis of quantitative factors. The load–distance method is one way to facilitate this step. Several location factors relate directly to distance: proximity to markets, average distance to target customers, proximity to suppliers and resources, and proximity to other company facilities. The load–distance method is a mathematical model used to evaluate locations based on proximity factors. This approach assumes that there is only one facility to be located, it must serve a predetermined set of nodes (customers, suppliers) in a logistic network, and it is independent of any other facility that may be in the network. The ...

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