Problems Operations and Process Management Essay

1617 Words Sep 16th, 2013 7 Pages
Problems Week 4 Betsy Whitfield
ITT Tech Online
MG518 – Operations and Process Management
Professor Eloise Thomas
August 24, 2013

* Chapter 9: Problems 2a, 2b, 5a, and 5b on page 346 * Chapter 10: Problems 2 and 5 on pages 381-382 * Chapter 11: Problems 2 and 3 on pages 407-408 * Chapter 12: Problems 2, 3a, 3b, 10a, 10b, 22a, and 22b on pages 440-443
Chapter 9

Problem 2
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a high-speed modem priced at $350 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution
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Alternatives were scored on a scale of 1 to 5 (5 = best) against weighted performance criteria, as shown in Table 11.6. The criteria included rent, proximity to work and recreational opportunities, security, and other neighborhood characteristics associated with the couple’s values and lifestyle.

TABLE 11.5 FACTORS FOR LOCATIONS A–D
Factor Score for Each Location
Location Factor Factor Weight A B C D

1. Labor climate 5 5 4 3 5

2. Quality of life 30 2 3 5 1

3. Transportation system 5 3 4 3 5

4. Proximity to markets 25 5 3 4 4

5. Proximity to materials 5 3 2 3 5

6. Taxes 15 2 5 5 4

7. Utilities 15 5 4 2 1 Total 100

Alternative A is an apartment, B is a bungalow, C is a condo, and D is a downstairs apartment in Jane’s parents’ home.

Which location is indicated by the preference matrix?

Location Factor Factor Weight A B C D

1. Labor climate 5 5, 25 4, 20 3, 15 5, 25

2. Quality of life 30 2, 60 3, 90 5, 150 1, 30

3. Transportation system 5 3, 15 4, 20 3, 15 5, 25

4. Proximity to markets 25 5, 125 3, 75 4, 100 4, 100

5. Proximity to materials 5 3, 15 2, 10 3, 15 5, 25

6. Taxes 15 2, 30 5, 75 5, 75 4, 60

7. Utilities 15 5, 75 4, 60 2, 30 1, 15 264 340 400 290
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