What kinds of location decisions are appropriate for the use of center-of-gravity analysis? What variable is being optimized in this analysis?
What will be an ideal response?
The center-of-gravity technique is appropriate when the location decision must find a single centrally-located site to serve any number of outlying points; locating a distribution center to serve a dozen retail stores is an example. The analysis leads to a location that (approximately) minimizes the distribution cost (or total distance traveled) between all outlying points and the center or hub.
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