Question 1

What is a center-of-gravity warehouse location calculation?

Accepted Answer

Center of gravity is the latitude/longitude that minimizes total weighted outbound distance from a warehouse to your customers. You weight each demand zone by orders or revenue, and the calculator returns the geographic point that balances them all. It's the fastest way to answer 'where should my single warehouse go?' and is the standard first-pass technique used by supply-chain consultants before they layer in cost, lead time, and tax considerations.

Question 2

How do I use this if I don't have order data yet?

Accepted Answer

Start with the 'US Population (Top 12 Metros)' preset — it's a reasonable proxy for a generic national e-commerce brand. If your customers skew east, west, or to a particular niche, switch to one of the other preset profiles (East-Coast-Heavy, West-Coast-Heavy, or B2B / Industrial). Once you have actual order ship-to data, replace the preset weights with your own percentages by metro.

Question 3

Why does the tool also show a two-DC East/West split?

Accepted Answer

Most growing brands hit a point — usually somewhere between 5,000 and 15,000 orders per month — where adding a second warehouse cuts average outbound zone significantly enough to pay for itself in carrier savings. The two-DC view splits demand at the longitudinal midpoint of the contiguous US (~-98.35°) and finds the best hub on each side, then estimates the new weighted-average outbound distance. The percentage reduction shown is the headline number you can take to a 3PL discussion.

Question 4

What does 'cost index' mean in the hub table?

Accepted Answer

Cost index is a relative multiplier comparing each hub against the US median for industrial lease rates plus warehouse labor. A 0.85 means roughly 15% below the national median for warehouse opex (Memphis, Greenville-Spartanburg, Kansas City), while 1.30 means roughly 30% above (Inland Empire CA, Northern NJ). Use it to balance the geographic answer against your operating budget — sometimes the second- or third-closest hub is materially cheaper to operate from.

Question 5

Does this account for shipping zones, real estate, or labor availability?

Accepted Answer

Not directly — it's a pure great-circle distance optimization with a relative cost index for context. For a rigorous siting decision you'll also want to factor in: parcel carrier zone discounts (each zone you skip is roughly 5–10% off the rate card), industrial vacancy in the target sub-market, labor pool depth, state/local tax incentives, and proximity to inbound ports or rail. Use this tool to narrow to 2–3 finalists, then engage a tenant rep or 3PL for a deeper site-selection study.

Question 6

How accurate is the average outbound distance number?

Accepted Answer

The average outbound distance is the weighted-mean great-circle distance from each demand zone to the chosen hub. Real shipping distance is typically 15–25% higher because of road geometry, but the relative comparisons (e.g., single-DC vs two-DC) are reliable. The number is most useful as a directional input to carrier rate analysis — a 30% reduction in average distance generally translates to a measurable drop in average parcel zone, which is what actually shows up on the carrier invoice.

Zone label	Latitude	Longitude	Weight

Rank	Hub	Dist. from C.O.G.	Cost index	Notes
1	Memphis TN	182 mi	0.85x	FedEx superhub, lowest-cost national distribution
2	St. Louis MO	183 mi	0.86x	Mississippi River + central highway access
3	Kansas City MO	193 mi	0.87x	Geographic center of US, intermodal + low cost
4	Nashville TN	326 mi	0.91x	Mid-South growth hub, 2-day to 70% of US
5	Dallas-Fort Worth TX	365 mi	0.95x	South-central anchor, strong multimodal access

Fulfillment Network Optimizer

Your demand zones

Center of gravity

Best single-DC locations

Best two-DC East / West split

How to use this calculator

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