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Turner Recycling Services Inc. has expanded its collection services into a new area. The business wants to set up a series of collection facilities for recyclable products, such as cans, newspapers, and cardboard boxes. It wants to locate its facilities so they are convenient, but at the same time it doesn't want to put a depot in every community in the area. Location analysis is an ideal means of helping Turner serve its clients well at as low a cost as possible. Turner uses location analysis to show it what its options are. A location profile of the area helps the business understand the trade-off between population coverage and number of recycling depots. With fewer depots, a smaller number of people is within a given coverage radius, but costs are lower. At the same time, locating more facilities (in the most strategic manner possible) helps to bring the recycling service close to more people, but at higher cost. The graph below shows the balance between percent of population within 20 km of a depot, and number of depots. For example, the graph shows that four depots located strategically would be within 20 km of 70% of the area's population.
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Turner Recycling has already determined the threshold level of business it needs, so knowing the trade-off between population coverage and number of depots simplifies the company's decision. The company believes it can achieve its threshold if at least 80% of the area's population is within 20 km of a recycling depot. A location analysis of the area shows Turner the number (six, see graph above) and location (see map below) of depots it needs to do this.
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| Location analysis gives Turner a means of quickly and efficiently making decisions that shape its operations in the area. Use of location analysis helps Turner's management to feel confident that their operations provide the service levels needed, with resource use that is as efficient as possible. |
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