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Universidad Privada del Norte, Escuela de Postgrado , Trujillo , Peru
Grupo de Investigación Desarrollo e Innovación UPN -IDIUPN; Universidad Privada del Norte, Escuela de Postgrado , Trujillo , Peru
The center of gravity (COG) approach is crucial in streamlining the logistics distribution channels by reducing transportation expenses and improving performance. This paper discusses the use of the COG method in the identification of the most optimal distribution center locations in a network of logistics. To determine the level of effectiveness of different methodologies used in enhancing the efficiency of the delivery process, the study employs a comparative analysis of different methodologies such as the COG method and the Analytical Hierarchy Process (AHP). The findings show that COG approach will lead to a potential decrease of transportation distances by 80 % and the cost of transportation will greatly decrease. Furthermore, the usage of COG led to the growth of profits of businesses by 80 %, and this indicates that it could be used to enhance profitability by strategically locating distribution centers. The analysis also proves that the COG technique saves time in the delivery period as it maximizes the proximity of the facilities thus improving customer satisfaction. In addition, the paper investigates the relevance of the method to emergency logistics problems, including disaster evacuation planning, in which access to important facilities is crucial. The paper will highlight the relevance of data-driven solutions such as COG in the optimization of logistics and provide a clear advantage to businesses in all kinds of fields, including retail and emergency response. The results are strong statistical support of the effectiveness of the method and its usefulness in commercial and emergency logistics.
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