Quantitative Layout Analysis - Load Distance Analysis Method

Load distance analysis is useful in comparing alternative layouts to identify the one with the least product or material travel time per period. This method helps to minimize transportation costs by evaluating alternative layouts on the basis of the total of the product of actual distance moved and the load the units moved for each layout alternative.

Alternatively the material handling costs can be computed directly by multiplying the number of loads by the material handling cost per load. They layout with the lowest (total load * distance) or total (load * cost) is the best choice.