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Active Excel Models to Teach Location and the Center-of-Gravity Method
Neha Mittal and Howard Weiss
Fox School of Business, Temple University, USA
Volume 6: 2012, pp. 79-90; ABSTRACT
The center-of-gravity (COG) is one of the fundamental concepts in location models that appear in Operations Management textbooks. Kuo-and-White (2004) noted that in spite of what is written in many textbooks, the COG does not minimize the total transportation cost when using straight-line distances. In this short note, we present a new way to clarify COG’s sub-optimality through the use of four Excel-based worksheets that actively engage students. We begin by showing that in one dimension the median of the locations is a better site than the COG and that when students perturb the problem into two dimensions the median remains better. Next, we enable students to alter the distribution facility's location and find for themselves a less costly location than the COG. We develop a simulation to compare the COG and median solutions and lastly suggest the use of Excel’s Solver to easily determine the optimal location.
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6 copies:
Minimum Order Value
6 copies:
Minimum Order Value
6 copies:
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