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- Explain 5 consequences of location strategy?4.8 We Rescue, Inc., a firm providing nationwide ambulance services, intends to expand its service range through a new branch in the suburbs of the mid-Atlantic region. Th e data were gathered to evaluate three different possible sites, Suburb A, Suburb B, and Suburb C, for the new location. The data include factor ratings, minimum satisfactory level, and importance rankings of each factor (attribute), as shown in Table EX 4.8. Attribute (factor) Weight Suburb A Suburb B Suburb C Satisfaction level Importance Ranking Contracting and Land Cost 0.1 65* 76 45 70 3 Labor Availability and cost 0.15 50 65 60 65 5 Transportation and road network 0.15 60 70 75 80 4 Supplier/ Support Service companies 0.13 75 60 65 85 6 Average time per Emergency trip 0.22 95 75 70 95 2 Accessibility to hospital 0.18 85 80 65 90 1 Employee preference 0.07 60 50 55 75 7 Total 1.00…4. A local manufacturer of Barbadian-branded pens has chosen a site for herbusiness which will have fixed costs of $9,200 per month and variable costs of$2 per unit produced. Each item is sold to retailers at a price that averages$2.20.a. What volume per month is required in order to break even?b. What profit would be realised on a monthly volume of 87,000 units?c. What volume is needed to reach a profit target of $16,000 per month?
- 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable Costs/unit 30 20 15 10 vi. Over what range of output is location B the most preferred location? v. Over what range of output is location C the most preferred location?Q4) A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. Populate the relevant data using your group number Complete a numeric locational cost-volume Indicate over what range each of the alternatives A, B, C is the low-cost choice. Is any alternative never preferred? Costs A B C Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 20+13 23+13 15+13Factor(100 points each) Weight A B C Convenience 0.15 86 75 80 Parking facilities 0.2 70 86 96 Display area 0.18 88 90 91 Shopper traffic 0.27 86 90 95 Operating costs 0.1 95 91 96 Neighborhood 0.1 88 88 91 1.00 A. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Location Composite score A ______________ B ________________ C ________________
- Assistance please. ABC 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. I. Design a numerical example in order to demonstrate to the Productions andOperations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.What is Facility Planning Location Strategy? What is efficient and effective Facility Planning - Location Strategy?Question 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
- What is site selection and factor rating method?ABC 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.I. Design a numerical example in order to demonstrate to the Productions andOperations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.ABC 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. . If total fixed cost = 40000 AVC = 20 Price per unit = 10 Break even point = 40000 / 20 - 10= 4000 So at the 4000 units of production, there will be no profit and loss as the total revenue is equal to the total cost. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.
