Center of Gravity Method

The Center of Gravity Method is a strategic tool used to determine the optimal location for a facility, like a warehouse or distribution center, based on the geographic distribution of costs such as transportation or delivery. It calculates a central point that minimizes total transportation costs by considering the locations and the volume or demand at each point. Essentially, it’s like finding the balancing point where all the weight (demand) and distances (costs) are evenly distributed, helping businesses choose a site that reduces overall transportation expenses and improves efficiency.