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All Journal Journal Industrial Servicess
Musa, Adekunle Ibrahim
Department of Mechanical Engineering Olabisi Onabanjo University Ago Iwoye Ogun State Nigeria
Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Industrial & Manufacturing Engineering Mechanical Engineering Transportation

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Optimal location selection for a new processing plant using supply chain and distribution network analysis Musa, Adekunle Ibrahim
Journal Industrial Servicess Vol 11, No 1 (2025): April 2025
Publisher : Universitas Sultan Ageng Tirtayasa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62870/jiss.v11i1.31534

Abstract

Selecting an optimal processing plant location is a critical decision in supply chain management, directly affecting operational efficiency, cost-effectiveness, and distribution logistics. This study aims to identify the most suitable location for a new processing plant that sources raw materials from three suppliers and distributes finished products to two distribution points. We employed the Center-of-Gravity method to determine the optimal geographical location and a cost-minimization model to ensure minimal transportation expenses. We analyzed data on supply capacities, demand requirements, transportation costs, and geographical coordinates. The Center-of-Gravity calculations identified an optimal location at coordinates (24.67, 19.50). Further cost-optimization modeling revealed that this location reduces total transportation costs to NGN 80,500.00, yielding lower costs than alternative sites. These findings confirm that an optimally selected plant location significantly lowers logistics costs and enhances supply chain efficiency. This study underscores the effectiveness of integrating quantitative techniques in facility location decisions. To further refine such analyses, future research could incorporate real-time traffic data, infrastructure availability, and environmental factors. These insights offer valuable guidance for industries seeking cost-efficient, strategically positioned processing facilities.
Comparative analysis of tangible and intangible factors in selecting the optimal location for a small-scale industry MUSA, Adekunle Ibrahim; CHAUDHARY, Kapil; POHETO, Daniel Jesuyon
Journal Industrial Servicess Vol 12, No 1 (2026): April 2026
Publisher : Universitas Sultan Ageng Tirtayasa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62870/jiss.v12i1.35862

Abstract

Selecting an optimal location is critical for the sustainability and competitiveness of small-scale industries. This study evaluates three Nigerian states Lagos, Ogun, and Oyo using a multi-criteria decision-making (MCDM) approach. A Simple Additive Weighting (SAW) model was applied to assess both tangible factors and intangible factors. Data were collected from 30 purposively selected respondents and secondary sources. Results indicated that Oyo State ranks highest (7.85), followed by Lagos and Ogun (7.64 each). The study concludes that Oyo is the best option for cost-conscious investors, Lagos suits businesses prioritizing infrastructure, while Ogun is viable for low-cost operations with manageable security risks. The robustness of the results was confirmed by a sensitivity analysis (70:30 weighting). The paper is significant as it incorporates tangible-intangible trade-offs in the location choices of SMEs in the framework of a developing economy. The findings emphasize a holistic approach to location selection. Future studies should explore technology and sustainability in industrial location decisions.
Co-Authors CHAUDHARY, Kapil POHETO, Daniel Jesuyon