Conquer the CLTD Challenge 2026 – Navigate Your Path to Logistics Success!

The center of gravity coordinates formula is primarily used to assess the optimal location for distribution centers. This formula calculates the centroid of a set of locations based on the weights of the distribution of goods or demand, helping to identify a point that minimizes transportation costs and maximizes service efficiency. By using this formula, businesses can better position their distribution centers in relation to their customer base or suppliers, thus reducing logistics expenses and improving delivery times.

The other options, while related to logistics and distribution, do not fall within the scope of what the center of gravity coordinates formula can determine. For instance, optimal shipping rates and total shipping costs involve a broader analysis of shipping methods and pricing strategies rather than merely geographic positioning. Maximum load capacity deals with the physical limitations of storage or transport vehicles rather than their placement in relation to demand or supply.