Supply Chain Management Tutorial | Supply chain centroids

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In the study of supply chain management, the concept of centroids has become an important economic consideration. A centroid is a location that has a high proportion of a country’s population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centroids have been defined, one near Dayton, Ohio, and a second near Riverside, California.

 

The centroid near Dayton is particularly important because it is closest to the population center of the US and Canada. Dayton is within 500 miles of 60% of the US population and manufacturing capacity, as well as 60% of Canada’s population. The region includes the interchange between I-70 and I-75, one of the busiest in the nation, with 154,000 vehicles passing through per day, 30–35% of which are trucks hauling goods. In addition, the I-75 corridor is home to the busiest north-south rail route east of the Mississippi River.

 

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