a) Calculate the total load-distance value from each potential Wefixit location. Total load-distance value for Northwest of Loop Total load-distance value for South of Loop
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- Explain the a ssumptions behind the center-of-gravity method. How can the model be used in a service facility location?Unisng the information provided in the photo attached, 1. demonstrate how the centre of gravity location technique can be used to determine the best location that will minimize total travel distance. SHOW ALL WORKINGWiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year. a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?
- Problem 8-2 The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.70 per sandwich. Sandwiches sell for $2.50 each in all locations. Rent and equipment costs would be $5,050 per month for location A, $5,570 per month for location B, and $5,740 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $9,500. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Location Monthly Volume A B C b-1. If expected sales at A, B, and C are 20,800 per month, 22,100 per month, and 23,300 per month, respectively, calculate the profit of the each locations? (Omit the "$" sign in your response.) Location Monthly Profits A $ B $ C $ b-2. Which…Which of the following explain the need for facility location selection?(a) When the existing business unit has outgrown its original facilities and expansion is not possible.(b) When a business is newly started.(c) When the lease expires and the landlord does not renew the lease.(d) All of theseFor example, a manager for Wal-Mart may have sufficient secondary data onincomes, family sizes, number of competitors, and growth potential to determine in which of five Iowa towns Wal-Mart wishes to locate its next store. And if traffic counts exist for the selected town, primary data will have to be gathered to select a specific site for the store. True False Which question should be posed in determining the accuracy of secondary data? A. What information was collected? B. What was the purpose of the study? C. Both a & b. D. Neither a nor b.
- Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from550,000 to 600,000 shipments per year.a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?Dobb's Ltd Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. Assuming: Total fixed cost = 80,000 Price per unit= 20 AVC (Average variable cost) = 40 Break-even point= Total fixed cost / (AVC-Price per unit) Break-even point = 80,000/ (40-20) Break-even point = 4,000 1) Demonstrate to the OM manager using graph how to go about choosing the best location using thenumerical example designed above.A Develop a transportation grid. Boulder Macon Gary Requirements B find the optimal solution using Microsoft Candidate Selection Boulder Macon Gary Total supplied Profit Boulder Macon Gary Total profit
- Katie Reynolds owns two exclusive women's clothingstores in Miami. In her plan to expand to a third location,she has narrowed her decision to three sites- one in a downtownoffice building, one in a shopping mall, and one in anold Victorian house in the suburban area of Coral Gables. Shefeels that rent is absol utely the most importa nt factor to beconsidered, although walk-in traffic is 90% as important asrent. Further, the more distant the new store is from her twoexisting stores, the better. She weights this factor to be 80%as important as walk-in traffic. Katie developed the followingtable, in which she graded each site from A to D, with A beingbest. Which site is preferable?A firm that has recently experienced enormous growth is seeking to lease a small plant in Memphis,TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given thefollowing information: Annual costs for building, equipment, and administration would be $40,000for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected tobe $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000per year, and the Birmingham location by $25,000 per year. Expected annual volume is 10,000 units.An operations manager wants to use factor rating method to decide the location of a new restaurant. Weights of the three factors specified, and the scores of two options are shown in the table below. Which option should the operations manager choose and what is the weighted score of this option? Factor Weight Option 1 Score Option 2 Score Proximity to the University 0.5 90 80 Rental Cost 0.3 80 100 Size 0.2 70 70 Option 2, weighted score = 84 Option 2, weighted score = 83 Option 1, weighted score = 83 There is no difference between the two options Option 1, weighted score = 84