Direct answer. In logistics, the center of gravity is a theoretical geographic point calculated as the weighted average of the locations of several sites (suppliers, customers, stores), weighted by their respective volumes or tonnages. It serves as a first approximation for finding the optimal location for a warehouse or platform, by minimizing total distance traveled.
A calculation method, not a final decision
Calculating the center of gravity, also called the "center-of-gravity method," involves weighting the geographic coordinates of each site to be served by a weight representative of its importance in the flow, most often tonnage transported or number of deliveries. The resulting point theoretically minimizes the sum of weighted distances between the warehouse and all the sites in the network: it is a useful starting point for a location study, particularly when a distribution network is expanding or being reorganized.
This method does, however, have limits worth keeping in mind. It works in straight-line distance, without accounting for the actual road network, travel times, costs that differ by transport mode, or the practical constraints of a location (land availability, highway access, local labor costs, taxation). In practice, the center of gravity therefore serves as an entry point for a location study, later refined through a simulation of real transport costs, an analysis of actual road travel times, and a check of available sites in the identified area.
FAQ
How is a logistics network's center of gravity calculated?
The geographic coordinates of each site (customer, supplier, store) are weighted by a criterion representative of its weight in the flows, most often tonnage or number of deliveries, and the weighted average of these coordinates is then calculated to obtain a theoretical point.
Is the center of gravity enough to choose a warehouse location?
No. The center of gravity gives a starting geographic area, calculated in straight-line distance. The final choice requires a further study incorporating the actual road network, transport costs, delivery times, available land, and other local constraints.
When is the center-of-gravity method used?
It is used when creating a new site, reorganizing an existing distribution network, or adding a warehouse to absorb business growth. It is particularly useful in the early phase of a project, before launching more detailed and more costly feasibility studies.
Related terms
Transport plan · Last mile · Volume consolidation · Resource pooling · Milk run · Lead time · Logistics KPI.
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