Determine Center(s) of Gravity
Center(s) of Gravity can be determined using the following scenarios:
Number of CoGs Scenario
The Number of CoGs Scenario calculates one or more centers of gravity, which are possible locations for your DCs. They are calculated such that the total travel distance to all specified demand/supply locations is minimal. This scenario can be executed by entering the number of CoGs into the Number of CoGs widget. This value should be an integer between 1 and the total number of locations which you take into account. After specifying this number, click on the Solve Number of CoGs button in order to execute the calculation.
Algorithm to determine CoGs in the Number of CoG scenario
Suppose that each of your demand/supply locations has a certain force proportional to its load. They each pull on the location of a single center of gravity (CoG). When each location uses its force to pull in its own direction, the CoG ends up in the center of those forces. At that moment, the algorithm has found the location which minimizes the total load travel distance.
To find multiple (say, N) centers of gravity (CoGs), the algorithm starts with N locations being the CoGs. The app assigns the closest CoG as the serving DC for each demand/supply location. For each DC (meaning CoG), the algorithm finds the optimal location based on the loads of the locations which it serves.
This process is reiterated. The demand/supply locations are reassigned to the closest CoG location, based on new locations calculated for CoGs. Then, according to the loads of new supply/demand assignments, the CoGs are relocated. The process is reiterated until a final balance is found with N centers of gravity and each supply/demand location is served by the closest center of gravity, resulting in a minimal total load travel distance.
Drive Time Scenario
In this scenario the Center of Gravity generates a grid of cities on top of the data area and selects the minimum number of cities which can serve as DC, such that all customer locations can be reached within the specified maximum drive time. This means that for each demand/supply location, the drive time to its serving DC (center of gravity) will be at most the maximum drive time you specify. In the Maximum Drive Time widget you can specify the maximum number of hours that the demand/supply is allowed to travel from a DC to the demand location/the supply location. After entering this number, click on the Solve Max Drive Time button.