Given the Retail Location Coordinates and the Value of Material

question 55

Essay

Given the retail location coordinates and the value of material movement in the following chart, find the best supply point location using the center-of-gravity method.
$$\begin{array} { c c c } \text { Retail Outlet } & \text { Lacation Coordinates } \mathbf { X } , \mathbf { Y } & \text { Materal Movement } \\\hline 1 & 25,05 & 1,500 \\2 & 17,20 & 3,000 \\3 & 12,12 & 1,000 \\4 & 06,09 & 2,200\end{array}$$

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Idle Capacity

Unused production capacity in a business, where the facilities, equipment, or workforce are not being fully utilized.

Underutilized Labor

A situation where employees are not working at their full capacity or skill level, leading to inefficiency and increased labor costs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.