Optimal location of electricity vending station

Abstract

Location decisions for services tend to be an important part of the overall market strategy for the delivery products or services to customers efficiently and effectively. This paper focuses on optimal location of prepaid vending point using concepts from the Centre of Gravity and Euclidean Models. The method locates the facility at an optimal location minimizing the average distance travelled and transportation cost. The approach is simple, since the transportation rate and the point load (kWh) are the only location factors. The model was used to locate the optimal vending point of Abokobi, Ghana. The optimal vending station was found to have coordinates (0.5549, 0.7516)km in relation to Abokobi Rural Bank which was selected as the reference point, a point which eventually minimize transportation cost of T= ¢7909.20 from the chosen reference point. 22 Joseph Ackora-Prah et al.