Going Inc.: Location Break-Even Analysis

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INTRODUCTION

This document is the final project of Operations Management for Competitive Advantage class and consists in the description of the best location for new hubs for the service arm and the best location and set up strategies for the manufacturing arm for Going Inc. In this document is included Weighted, Center of gravity, Location break-even analysis & Transportation method (linear programming).

CONTEXT

Facility planning is essential to ensuring a smooth manufacturing and service process. The location and set up of the facility can have a direct impact on production and the ability of Going, Inc to deliver the product to customers. When determining the best hubs for the service arm and the manufacturing arm of Going, Inc the strategy that will be used should save the company time and money and ensure a smooth continuous service and production process. The location strategy of any organization should result in a maximize benefit for the service and manufacturing division.

The first location decision for the service department is what areas of service will be provided to the customer. This includes determining plane routes and plane schedules as well as the types of flight routes that will be provided by Going, Inc. The more locations or flight routes that made are available to the customer the better the
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A grid will be used to coordinate locations and use x and y x coordinates to calculate the cost. The center of gravity strategy assumes the cost of travel versus the cost of distance and volume to be shipped. The center gravity strategy would provide Going, Inc more precise measurements of the ultimate costs and benefits of the selected locations to ensure the location that is selected will most benefit the customer and the production and capacity processes at Going,

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