Facility location analysis: an optimal facilities location program can be used to study which types of siting alternatives for operations?

Difficulty: Easy

Correct Answer: All of the above

Explanation:


Introduction / Context:
Facility location models help determine where to place plants, factories, and warehouses to minimize cost and maximize service levels. These models consider transport costs, demand points, capacity, and service constraints.



Given Data / Assumptions:

  • We are choosing sites among alternatives for production or distribution nodes.
  • Objective functions can include cost minimization or service-time targets.
  • Constraints may include capacity limits, service coverage, and budget.


Concept / Approach:
Optimal location problems span multiple facility types: manufacturing plants (factories) and distribution warehouses. Algorithms include p-median, p-center, set covering, and mixed-integer linear programming that unify treatment of these alternatives.



Step-by-Step Solution:

Recognize that ‘‘facility’’ encompasses both plants and warehouses.Map each listed alternative (factory, warehouse, plant) to the same optimization framework.Choose the inclusive option covering all siting use cases.


Verification / Alternative check:
Commercial tools (e.g., network design optimizers) accept both production and distribution nodes, confirming the method applies broadly.



Why Other Options Are Wrong:
Each single facility type is only a subset; the question asks what the program can study—hence all listed types.



Common Pitfalls:
Assuming separate models are required for different facility types; one framework often handles them with modest tweaks.



Final Answer:
All of the above

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