Bottling Plant Location of Microbreweries in East Midlands Area, UK
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Zheng, Chi (2013) Bottling plant location of microbreweries in East Midlands area, UK. 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For more information, please contact [email protected] University of Nottingham Bottling Plant Location of Microbreweries in East Midlands Area, UK Chi Zheng Student ID: 4186333 Msc Logistics and Supply Chain Management Bottling Plant Location of Microbreweries in East Midlands Area, UK By Chi Zheng 2013 Acknowledgements Firstly, foremost I offer my sincerest gratitude to my dissertation supervisor, Professor SanjaPatrovic and project supervisor, Dr Jeremy Avis, who have supported me throughout the whole dissertation period using their knowledge and experiences with my thesis whilst allowing me sufficient room to work on it using my own approach. I have been encouraged and supported a lot by my group mates of the same project: OtsileTsapo and Gonzalo Masjuan. They have given my suggestions about my work and the arguments in each group meeting help me much to improve my idea. Then, I should thank the friendly librarians in Business Library of the University of Nottingham Jubilee Campus have provided good book services which help me to understand my thesis better in my daily work. Finally, I should be grateful to my parents-Linxian Zhu and DeliangZheng for always giving me great support psychologically and also financially. Abstract Facility location decisions are critical in real-life projects, which impact on profitability of investment and service levels from demand side. In this paper, a project-based facility location problem should be resolved which refers to the establishment of a centralized bottling plant to serve microbreweries in East Midlands area of UK. This problem will be structured by firstly finding a mathematically theoretical location using the centre-of-gravity method and then formulate the problem as a multi-criteria decision making problem applying Analytical Hierarchy Process based on selection of the optimal location out of the four candidate locations where three of those have been given. The second part is modeled by considering several criteria related to both the activities before and after bottling and also issues of surrounding area of the location where the prioritization of those criteria are based on the preferences of the project investor. The final result is obtained by applying EXPERT CHOICE to approach Eigenvalue methods to enhance Analytical Hierarchy Process. The outcome can be clarified with illustration of the sensitivities resulted from the weight changes of criteria and the pull-out of certain criteria. Key Words: Facility Location, center-of-gravity method, Multi-criteria decision making, Analytical Hierarchy Process Table of contents Acknowledgement Abstract List of figures 1. Chapter 1: Introduction………………………………………………………………..1 1.1. Background………………………………………………………………………….1 1.2. Subjects and objectives…………………………………………………………….1 1.3. Outline of the dissertation………………………………………………………….2 2. Chapter 2: Literature Review…………………………………………………….........4 2.1. Facility location problem: An overview……………………………………………..4 2.2. Facility location problem: Location Theories………………………………………..4 2.3. Types of facility location problems and corresponding solutions…………………...5 2.3.1. Continuous VS discrete location problem…………………………………..5 2.3.2. Static VS Dynamic location problems………………………………….......7 2.3.3. Capacitated VS Uncapacitated location problems………………………….8 2.3.4. Single VS Multiple location problems………………………………….......9 2.3.5. Single- VS Multiple-criteria location problems…………………………….12 2.3.6. Facility location problems under VS not under competitive environment…17 2.4. Facility location problems in project background…………………………………..18 2.4.1. Facility location problems relevant to this project………………………….18 2.4.2. Manufacturing plant location issues………………………………………...18 2.4.3. Site selection of bottling facility in different contexts……………………...19 2.5. Summary of literature………………………………………………………………..19 3. Chapter 3: Methodology………………………………………………………………..21 3.1. Project objectives……………………………………………………………………21 3.2. Identification of the problem……………………………………………………….21 3.3. Assumptions………………………………………………………………………..22 3.4. Framework………………………………………………………………………….22 3.5. Sampling scheme……………………………………………………………………23 3.6. Procedure of data collection…………………………………………………………23 3.6.1. Data description……………………………………………………………...23 3.6.2. Data collection tools…………………………………………………………25 3.7. Data Analysis tool…………………………………………………………………..26 3.7.1. Center-of-gravity method………………………………………………………26 3.7.2. Analytical Hierarchy Process………………………………………………….28 3.8. Limitations………………………………………………………………………….32 3.9. Period covered……………………………………………………………………..32 4. Chapter 4: Findings and Analysis……………………………………………………..33 4.1. Findings…………………………………………………………………………....33 4.1.1. Survey Results……………………………………………………………...33 4.1.2. Observations………………………………………………………………..35 4.1.3. Meetings…………………………………………………………………….36 4.2. Data Analysis………………………………………………………………………38 4.2.1. Result of the theoretically optimal location………………………………..38 4.2.2. Analytical Hierarchy Process……………………………………………….44 4.3. Summary…………………………………………………………………………...80 5. Chapter 5: Conclusion………………………………………………………………….81 References……………………………………………………………………………………82 Appendix I…………………………………………………………………..………………97 Appendix II………………………………………………………………………………..104 Appendix III……………………………………………………………………………….108 Appendix IV………………………………………………………………………………..111 Appendix V…………………………………………………………………………………113 Appendix VI………………………………………………………………………………..116 Appendix VII……………………………………………………………………………….117 Appendix VIII………………………………………………………………………………118 List of figures: -List of tables and graphs Chapter 2: Table 2.1 List of published articles of continuous facility location Chapter 3: Table 3.2 Judgement scaling of pairs of criteria Table 3.3 Ranking of criteria Table 3.4 Judgement scaling of pairs of alternatives Table 3.5 Pairwise comparison matrix of alternatives Graph 3.1 Framework of the whole problem Graph 3.2 Problem modelling in Analytical hierarchy process Chapter 4: Table 4.1 Location details of thirteen responses (Google Earth, 2013) Table 4.2 Coordinates of the breweries Table 4.3 twenty four available industrial units in East Midlands Table 4.4Relative distance between the location of nearer industrial units and NG17 7QR Table 4.5 Four Alternatives of candidate locations Table 4.6 Pairwise comparison of pairs of criteria Table 4.7 Pairwise comparison matrix of criteria Table 4.8 Real distances from breweries to candidate locations Table 4.9 Mile differences among pairs of alternatives Table 4.10 Guideline of Judgement scaling referring to mile difference in the criteria of distance from bottling plant to breweries Table 4.11 Pairwise comparison matrix 1 of alternatives Table 4.12 Four main competitors Table 4.13 Market share obtained from competition to the candidate sites Table 4.14 Guideline of judgement scaling referring to market share difference Table 4.15 Pairwise comparison matrix 2 of alternatives Table 4.16 Freight forwarders near Derby Table 4.17 Real distances measured from candidate locations to Trans Atlantic Shipping Ltd Table 4.18 Guideline of judgement scaling referring to mile difference in the criteria of distance from bottling plant to consolidation point Table 4.19 Pairwise comparison matrix 3 of alternatives Table 4.20 Empty bottle companies Table 4.21 Real distance between candidate locations and BeatsonClaarke Ltd Table 4.22 Guideline of judgement scaling referring to mile difference in the criteria of distance referring to bottle sourcing Table 4. 23 Pairwise comparison matrix 4 of alternatives Table 4.24 Pairwise comparison matrix 5 of alternatives Table 4.25 Required information referring to return rate Table 4.26 Some basic information of the four properties Table 4.27 Available facilities, equipment and parking situations of four sites Table 4.28 Pairwise comparison matrix 6 of alternatives Table 4.29Pairwise comparison matrix 7of alternatives Table 4.30 Crime rate in the surrounded area of four candidate locations Table 4.31 Distance