CATHOLIC UNIVERSITY OF SAINT MARY

FACULTY OF PHYSICAL SCIENCES AND ENGINEERING

FORMALS

SCHOOL OF INDUSTRIAL ENGINEERING

COURSE:
Plant Engineering - Practice

THEME:
Location of the Plant Quantitative Methods

TEACHER:

Oswaldo René Rodriguez Salazar

GROUP:01

MEMBERS:
Rodríguez Cruz, Lucero
●Sánchez Carazas, Mildrem Milagros
●Yupanqui Barrios, Andree Efrain

Arequipa - 2020
GUIDE 3: PLANT LOCATION QUANTITATIVE METHODS

1. OBJECTIVES
Learn to apply quantitative methods in decision making
plant locations, looking for the best alternatives among different ones
locations.
Calcular y comprender de manera más detallada los riesgos que tenemos de
implement, build and locate a production plant in certain
locations, this assisted by quantitative methods.
Learn to interpret and analyze the results of each quantitative method
of plant location.

2. DEVELOPMENT
[Link] 3–Practice Activities
The HiOctane Refinery needs to locate an intermediate holding facility.
between its Long Beach refinery and its main distributors. In the table
1 the coordinate map appears. The amount of gasoline dispatched until
and from the plant and the distributors is shown in Table 2. In Table 2 the
amount of gallons transported. Find the distribution point using the
center of gravity method.

Frame No. 1: Map

Locations Gallons of gasoline per month (000,000)

Long Beach 1500
Anaheim 250
LaHabra 450
Glendale 350
Thousand Oaks 450

Table No. 2: Dispatch Volumes

Solution:

Locations Gallons Coordinates Coordinates Gallons Gallons

of X Y de of
gasoline gasoline gasoline
per month (CX) (CY)
(000,000)
Long Beach 1500 325 75 487500 112500
Anaheim 250 400 150 100000 37500
La Habra 450 450 350 202500 157500
Glendale 350 350 400 122500 140000
Thousand Oaks 450 25 450 11250 202500
SUMMARIES 3000 923750 650000

Table No. 3: Development of Gravitational Method

A) Calculation of the X coordinate of the center of gravity

∑
X coordinate of the center of gravity=
∑

CX= 923750 = 307.92 ≈308

3000

B) Calculation of the Y coordinate of the center of gravity

∑
Y coordinate of the center of gravity=
∑

CY= 650000 = 216.66 ≈217

3000

C) Then, we will locate on the map, the coordinate that we just

to find

C. Grav: (308,217)

Table No. 4: Location of the Plant

[Link] 1–Proposed Exercises
There is a RESORT-type project on the beaches of Peru, which...
CC&SS real estate has decided to evaluate. The company's board of directors in
together with the project study manager estimated that both the factors
Quantitative (objective) as well as qualitative (subjective) factors result
relevant in determining the location of the tourist center.
Below are the results of the technical study considering
the costs of investment and operation.

Annual Costs (thousands of dollars)

Cost of Annual Cost
City Land Cost
Construction Operational
Trujillo 185.00 47.00 4.70
Arequipa 162.00 50.00 3.80
Ica 150.00 41.00 5.10

At the same time, the market study was deepened through surveys.
directly to a sample of the target market, obtaining the following
primary information:
The most valued attributes by the potential market for an apartment
for vacations, natural beauty of the surroundings (50%), access roads to
place (25%) and the weather (25%).

For the evaluation of the factors, use the following values: Excellent = 2,
Bueno = 1, Deficiente = 0
The study noted that Arequipa and Ica were the most preferred places in terms of
natural beauty of the surroundings, as the respondents expressed their
preference with equal weighting for both resorts.

Regarding access, Arequipa and Trujillo are preferred with the caveat that,
in this case, having to choose between the two, one opts for Arequipa
for having wider avenues. As for the weather, there is no preference.
specific between Trujillo and Ica, but when comparing Trujillo and Arequipa, people
prefers this one. The spa in Arequipa is preferred over Ica.
Subjective factors are valued at 30% and objective values at 70%.
Using the Brown and Gibson model, determine the location.
optimal project considering subjective and objective values.

Note: Use all the decimals

Solution:

A) Calculation of FOi.

Annual Costs (thousands of dollars)

City Cost of Cost Total Annual Cost Reciprocal
Land Operational Construction (1/C)
Trujillo 185.00 47.00 4.70 236.70 0.004224757
Arequipa 162.00 50.00 3.80 215.80 0.004633920
Ica 150.00 41.00 5.10 196.10 0.005099439
TOTAL 0.013958116
Table No. 5: Calculation of FOi

0.302673867
0.331987508
0.365338625

B) Determination of Wj classification.

Wj
Natural beauty of the surroundings 0.50
Access routes to the place 0.25
Clima 0.25
Table No. 6: Determination of Wj classification.

C) Calculation of the RIJ

Where:

Rating Rij
Excellent 2
Good 1
Deficient 0
Table No. 7: Rating of Rij

Natural beauty of the environment

City Rating Row

Trujillo 0 0
Arequipa 2 0.5
Ica 2 0.5
Total 4 1
Frame No. 8: Natural beauty of the surroundings

Access routes to the place

City Rating Row
Trujillo 1 0.333333333
Arequipa 2 0.666666667
Ica 0 0
Total 3 1
Frame No. 9: Access Roads

Climate
City Rating Row
Trujillo 1 0.25
Arequipa 2 0.5
Ica 1 0.25
Total 4 1
Table No. 10: Climate
D) Calculation of the FSi

Row
Factor Trujillo Arequipa Ica Wj
Beauty natural from 0.00 0.50 0.50 0.50
environment
Access routes to the place 0.33 0.67 0.00 0.25
Climate 0.25 0.50 0.25 0.25
Table No. 11: Calculation of FSi

= 0.1458
= 0.5417
0.3125

E) Calculation of MPL

=( ∗ ) +( ( 1 - k) ∗ )

Where:
k = 0.70
(1–k) = 0.3

k It was 1-k FSi

Trujillo 0.7 0.302673867 0.3 0.1458
Arequipa 0.7 0.331987508 0.3 0.5417
Ica 0.7 0.365338625 0.3 0.3125
Table No. 12: Calculation of the MPL

= 0.255621707
0.394891256
0.349487037
 F) Answer:
The optimal location of the project considering subjective values and
Objectives through the Brown and Gibson method is the city of Arequipa.

2.3. Exercise 2 – Proposed Exercises

SERVI-VELOZ S.L. is a company dedicated to urgent shipping.
packages and letters. It currently has five service branches.
public since the daily delivery motorcycles head out that
they serve the entire city of Alicante. However, there is a proposal to change
the central warehouse for receiving and shipping, since the construction of a
shopping and leisure center keeps traffic retained at all times to its
surroundings. This situation has caused that, from this warehouse to each
One of the five branches, shipments arrive increasingly late.

Additionally, the current central warehouse is located very far from the branches already.
that when it was built, a cheap place away from the center was sought after, and still
today, despite the opening of the shopping center, the housing in the area is
too scarce for it to be interesting to open branches in the area.

For the calculation of the new location of the distribution center, it

SERVI-VELOZ S.L. the company takes into account the location of its
offices and the intensity of shipments to each of them. In the following table is
provide the relevant data for solving the problem.

Indicate the coordinates where the new central warehouse should be located.

Number of shipments Location (Dnine,

diaries (Qi) Diy)
Office 1 20 (1,5)
Office 2 10 (3,3)
Office 3 42 (2,4)
Office 4 24 (6,7)
Office 5 35 (5,9)
 Solution:

Office Coordinate Volume Dix* Qi Diy* QI

X Y of shipments
(Qi)
1 1 5 20 20 100
2 3 3 10 30 30
3 2 4 42 84 168
4 6 7 24 144 168
5 5 9 35 175 315
SUMMATION 131 453 781
Table No. 13: Development of Gravitational Method

A) Calculation of the X coordinate of the center of gravity

∑
X coordinate of the center of gravity=
∑

CX= 453 = 3.46 ≈3

131

B) Calculation of the Y coordinate of the center of gravity

∑
Y coordinate of the center of gravity=
∑

CY= 718 = 5.48 ~5

131

C) Then, we will locate on the map the coordinate that we just

to find

Office Location
10 Office 5

8 Office 4

6 Office 1
Office 3 (3.46;5.96)
4 Office 2

2
0
0 1 2 3 4 5 6 7

Frame No. 14: Location of the Plant

 D) Answer
According to the Center of Gravity method, the new central warehouse of the
company SERVI-VELOZ S.L. in the city of Alicante will have the
coordinates of (3.46,5.96) to optimize letter delivery times
and packages to the branches.

2.4. Exercise 3 - Proposed Exercises

The mining company Minera Hostthem S.A. has received a preliminary study that
give three location options for the central warehouse you want to install: A, B and
The company extracts minerals.
such as silver, gold, and zinc, etc.; and has three mines. In each one of
they have a mineral concentrator that separates the ore from
remaining sterile material. - The land costs are S/. 75/m2 in B, 30% more
in A and 10% less in C. - The staff required in A must be
specialized with a basic salary of S/. 800 monthly, which is to work
In B and C, an additional percentage would be charged, which would reach 10% in C and 15% in B.

in B. - If the warehouse is installed in A or B, the costs of home, school, care

medical, etc., which represents an approximate cost of S/. 220.00 per worker
in the first case and S/.250.00 in the second. In C, for these same
concepts would only consider an additional payment of S/. 190.00 per worker.
Plant Engineering Practices Guide 6 - For the selection, the company has
considered some factors to which it has assigned weighting and
score indicated below:
 A) Assigned scores

FACTOR WEIGHING A B C
Logistics Management 3 4 3 5
Boarding Area 4 8 5 4
Land Cost 3 $47.50 $75.00 S/67.50
Cost of Labor 4 $800.00 $920.00 $380.00
Cost of Services to 5 S/220.00 S/250.00 S/190.00
Work.
Proximity to the 3 5 3 5
Concentrators
Table No. 15: Assigned Scores

4 8 47.5 3 800 4 220 5 53

= ( )3 ( 4)( )( )( ) ( )
3 5 75 920 250 3

= 47.6754 > 1
B) With that we conclude that; B is better than C

3 5 75 3 920 250 5 33
= ( )3 ( 4)( ) ( 4( ) ) ( )
5 4 67.5 880 190 5

0.74 is less than 1

C) Response
By using our dimensional analysis method, we see that option B is the
better among other places

2.5. Exercise 4 - Proposed Exercises

Determine using the Weighted Factors Method and the Brown Method
Gibson is the best location alternative for a brick company. It has been
three locations have been identified that meet the essential criteria.

a. The market is more important than transportation and labor; market

and raw materials, as well as transport and labor, are equally important;
raw material is more important than transportation and labor. Rate your
criteria the location of the company in Socabaya, Industrial Park-Río Seco and
 Mollebaya, using the following grading scale: Excellent=10,
Muy bueno=8, Bueno=6, Regular=4, Deficiente=2. Realizar Matriz de
Confrontation and indicate your response using the Factors Method
Weighted.

b. The annual costs (thousands of soles) are as follows

For the evaluation of the factors use the following values: Excellent = 2,
Bueno = 1, Deficiente = 0. La cercanía a Mercado en Socabaya y Parque industrial
It is excellent but deficient in Mollebaya. Regarding transportation, there is
preference for accessibility in the Industrial Park, in Socabaya is good and
Deficient in Mollebaya. The workforce is good in the three locations.

The proximity to the Raw Material is excellent in Socabaya and Mollebaya and with
many problems in the Industrial Park. If it is taken that the objective factors
they are three times more important than the subjective ones, indicate your answer using
the Brown and Gibson Method. Note: Use all decimals.

Solution: Weighted Factors Method

A) Confrontation Matrix
Factors Transport Market I Mp Total WE
MARKET 1 1 1 3 0.375
TRANSPORT 0 1 0 1 0.125
MO 0 1 0 1 0.125
MP 1 1 1 3 0.375
8 1

Table No. 16: Confrontation Matrix

 B) Ranking Table of Factors
Factors Weighted Socabaya Industrial Park Mollebaya
MARKET 0.375 6 2.25 10 3.75 4 1.5
TRANSPORT 0.125 6 0.75 8 1 2 0.25
MO 0.125 6 0.75 8 1 8 1
MP 0.375 8 3 8 3 6 2.25
6.75 8.75 5

Table No. 17: Ranking Table of Factors

C) Answer
According to the weighted factor ranking method, the best location will be in the
industrial park

Solution: Brown and Gibson Method

LOCALITY TRANSPORT MO MP OTHERS C 1/C

Socabaya 79 13 3.8 8 103.8 0.00963
Industrial Park 65 15 5.8 8 93.8 0.01066
Mollebaya 89 10 4 8 111 0.00901

Foa = 0.00963391/0.0290390 = 0.32875866

Fob = 0.01066098/0.02930390 = 0.36380756
Foc = 0.00900900/0.2930790 = 0.30743378

A) Subjective Factors

MARKET 37.50% TRANSPORT 12.50%

LOCALIDAD CALIFICACION RIJ LOCALITY RATING RIJ

SOCABAYA 2 0.5 SOCABAYA 1 0.33
PARK
IND. 2 0.5 INDUSTRIAL PARK 2 0.67
MOLLEBAYA 0 0 MOLLEBAYA 0 0
4 1 3 1
HAND OF MATERIAL
O. 12.50% FIRST 37.50%

LOCALIDAD CALIFICACION RIJ LOCALITY RATING RIJ

SOCABAYA 1 0.33 SOCABAYA 2 0.5
PARK
IND. 1 0.33 INDUSTRIAL PARK 0
MOLLEBAYA 1 0.33 MOLLEBAYA 2 0.5
3 1 4 1

FSA (0.2)(0.375)+(0.33)(0.125)+(0.33)(0.125)+(0.5)(0.375) = 0.4583

FSB (0.5)(0.375)+(0.67)(0.125)+(0.33)(0.125)+(0)(0.375) = 0.3125

FSC (0)(375)+(0)(125)+(0.33)(0.125)+(0.5)(0.375) = 0.2292

B) MPL
MPL
K= 0.75
MPLA (0.75)(0.38875866)+(0.25)(0.4583) = 0.361152
MPLB (0.75)(0.3638756)+(0.25)(0.3125) = 0.35098
MPLC (0.75)(0.30743378)+(0.25)(0.2292) = 0.28787

C) Answer

According to subjective and objective factors, the best location is A in Socabaya.

by achieving the best accumulated measure of preference

3. CONCLUSIONES

First. -In order to choose the optimal location for the correct installation and the
the development of this must formulate the relevant factors or criteria according to
the needs of the plant or facility under study. For this, we will also need to
apply quantitative methods.

Second.- The Gibson and Brown Method aims to evaluate among

various options, and it is based on three types of factors: critical, objective and
subjective.
 Third.–The Center of Gravity Method is a very simple technique and is usually
used to determine the location of intermediate warehouses and points of
distribution taking into account the distances that separate them from the income.

4. RECOMENDACIONES

First. -For a better choice of plant location, we resort to

any quantitative method since they all yield the same result and this leads us
help to recognize and choose the best option.

Second. -Develop the critical factors in a thorough and exhaustive manner,

objectives, subjective since they help us in the choice of location.

Third.–When performing mathematical and statistical calculations, we must review

the results and work with correct figures