The facility location optimization problems are economically justifiable and play a critical role in reducing the overall
running cost. An optimal facility location is directly proportional to traveling cost between facility and destinations. In
past decade, extensive research has beencarried out in this field. Most of the facility location optimization techniques
provide optimum or near optimumsolution. In this paper, an optimization technique median method is applied to a
real world problem of a multinational ice cream company’s factory located in Lahore, Punjab (province) Pakistan,
with an objective of minimum overall cost between a warehouse and destinations. The company wanted to locate the
warehouse in Khyber Pakhtunkhwa (KPK), province in order to meet the demand in KPK on time and reduce the
travelling cost between the warehouse and destinations. Moreover, using Contour line technique a generic computer
based simulation model is developed using MATLAB in order to draw an ISO cost contour line around the optimum
location. The model is successfully developed and provides encouraging results. The cost analysis of each potential
location is also presented in this paper.