Determination of Realistic Facility Location in Bangladesh by using Center of Gravity Method

Abstract

The facility location plays an important role in an industry's supply chain management to facilitate logistics management requirements, making the sourcing and distribution process smooth and fast. The purpose of this study is to determine the ideal place to determine the location of a garment industry. This research uses the Center of Gravity method to calculate the optimal location that will be considered. This method employs an (X-Y) coordinate system to cover the geographical map of the study areas and identifies the coordinates for the new facility's location. It endeavored to identify the optimal location for the garment industry in Bangladesh. It was pinpointed where the industry can obtain raw materials from various regions of the country and a market, labor force, and energy source. Information was gathered regarding the volume of business activity at existing facilities. From the results of this study, it was found that the selected facility's location at the coordinates (23.68497454, 90.5928119), the arable land of the village of Sreepatir Char, Sonargaon, Narayanganj, which is the centralized position according to the supplier's distance, market distance, and availability of labor. Finally, we have shown that the identified location is appropriate for the facility's placement.