In: Operations Management
Todd’s Direct, a major TV sales chain headquar-tered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new out-let in the center of Mobile’s population base. Todd examines the seven census tracts in Mobile, plots the coordinates of the center of each from a map, and looks up the population base in each to use as a weighting. The information gathered appears in the following table. CENSUS TRACT POPULATION IN CENSUS TRACT X, Y MAP COORDINATES 1. 101 2,000(25, 45) 2. 102 5,000 (25, 25) 3. 103 10,000 (55, 45) 4. 104 7,000 (50, 20) 5. 105 10,000 (80, 50) 6. 106 20,000 (70, 20) 7. 107 14,000 (90, 25) a) At what center-of-gravity coordinates should the new store be located? b) Census tracts 103 and 105 are each projected to grow by 20% in the next year. How will this influence the new store’s coordinates
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Solution: | ||||||||
Coordinate | ||||||||
Location | Population | X | Y | |||||
101 | 2000 | 25 | 45 | |||||
102 | 5000 | 25 | 25 | |||||
103 | 10000 | 55 | 45 | |||||
104 | 7000 | 50 | 20 | |||||
105 | 10000 | 80 | 50 | |||||
106 | 20000 | 70 | 20 | |||||
107 | 14000 | 90 | 25 | |||||
a). At what center of gravity coordinates should the new store be located? | ||||||||
X coordinate = | ∑Population_i*xi/∑Population_i | = | 66.69 | |||||
Y coordinate = | ∑Population_i*yi/∑population_i | = | 30.22 | |||||
b). Census tracts 103 and 105 are each projected to grow by 20% in the next year. How will this influence the new store’s coordinates? | ||||||||
Coordinate | ||||||||
Location | Population | X | Y | |||||
101 | 2000 | 25 | 45 | |||||
102 | 5000 | 25 | 25 | |||||
103 | 12000 | 55 | 45 | population increased by 20 % | ||||
104 | 7000 | 50 | 20 | |||||
105 | 12000 | 80 | 50 | population increased by 20 % | ||||
106 | 20000 | 70 | 20 | |||||
107 | 14000 | 90 | 25 | |||||
At what center of gravity coordinates should the new store be located? | ||||||||
X coordinate = | ∑Population_i*xi/∑Population_i | = | 66.74 | |||||
Y coordinate = | ∑Population_i*yi/∑population_i | = | 31.18 | |||||
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