Suppose that a bus company is deciding where to locate its central hub. There are 6 possible destinations for the buses. Suppose that the center of town will be used as the reference for describing the possible destinations

A is located 5 miles South and 3 miles West. B is located 3 miles North and 2 miles East. C is located 1 mile South and 5 miles East. D is located 2 miles North and 3 miles West. E is located exactly in the center of town. F is located 10 miles North and 5 miles East. Assume that traffic to each destination will be equal. Where should the hub go so that travel time is minimized?

Since each site has the same demand the coordinates can simply be averaged. Converting the center of town to (0,0 ) will mean that coordinates that are labeled South become -y and those labeled West become -x, while North becomes +y and East +x. Thus the location is found to be:
X = (-3 + 2 + 5 – 3 + 0 + 5 )/6 = 1
Y = (-5 + 3 – 1 + 2 + 0 + 10 )/6 = 1.5
Converting back into direction yields 1 mile East and 1.5 miles North of the center of town should be the location for the hub.

Business

You might also like to view...

An occupational illness is any abnormal condition or disorder caused by exposure to environmental factors associated with employment

Indicate whether this statement is true or false.

Business

In a short essay, explain how global companies compare to domestic companies with respect to controlling workers

What will be an ideal response?

Business