A plastic manufacturing company is considering 2 alternative locations for a new facility. The management considered 2 alternatives: Sta. Rosa and Sta. Rita. The fixed costs for Sta. Rosa is Php1M and variable cost is Php25 per unit. On the other hand, the fixed costs for Sta. Rita is Php1.5M and variable cost is Php23 per unit. 1. If the company plans on producing 50,000 units which location would be more attractive? 2. At what volume the two alternatives equal in cost?
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- In deciding on where to locate their next grocery store, Publix narrowed it down to 3 locations (St. Augustine, the Airport area, or the Westside). They are using 2 criteria to make their decisions costs (with a weight of 70%) and customer base (with a weight of 30%). Each item was scored on a 10-point scale with 10 being the highest. St. Augustine rated a score of 4 for cost and 10 for customer base; the Airport area rated a score of 6 for cost and 5 for the customer base, and the Westside rated a score of 8 for cost and 2 for the customer base. __________ 2a. What is the computed mean score for each of the 3 locations? __________ 2b. Which location should be chosen based on the highest score?The Skulls, a student social organization, has two different locations underconsideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha Ave $5000 $200 per person Beta Blvd $8000 $150 per person If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below: Locations Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 i. Based on costs, over what range of units will location A be preferred?ii. Based on costs, over what range of units will location B be preferred?iii. Based on costs, over what range of units will location C be preferred?
- A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being considered, one in the center of the city and one on the outskirts. The central city location would involve fixed monthly costs of $7,000 and labor, materials, and transportation costs of $30 per car. The outside location would have fixed monthly costs of $4,700 and labor, materials, and transportation costs of $40 per car. The dealer price at either location will be $90 per car. a. Which location will yield the greatest profit if monthly demand is (1) 200 cars? (2) 300 cars?b. At what volume of output will the two sites yield the same monthly profit? Can you show me the steps in excel?A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit. The finished items sell for $17,000 each.a. At what volume of output would the two locations have the same total cost?b. For what range of output would location A be superior? For what range would B be superior?A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. 1. Which alternative would yeild the higher profit for an annual demand of 3000 units? 2. Would the two locations yeild the same profit at a certain volume? If so, at what volume would that be?
- XYZ Company is considering expanding its new plant. Its favorable sites for expansion are Greenwood, Indianola, and Greenville. The company must select one of these sites given the following information (1) The company is expecting to sell 3000 units per year. (2) Fixed costs per year at Greenwood, Indianola and Greenville are $50,000, $80,000, and $120,000; and variable costs are $60, $100, and $80 per unit respectively. (3) The expected selling price for each unit $150. Based on the expected profit of each location, which site will be selected for plant expansion?A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-cardealers. Two locations are being considered, one in the center of the city and one on the outskirts The central city location would involve fixed monthly costs of $7,000 and labor, materials, andtransportation costs of $30 per car. The outside location would have fixed monthly costs of $4,700and labor, materials, and transportation costs of $40 per car. Dealer price at either location will be$90 per car.a. Which location will yield the greatest profit if monthly demand is 200 cars? 300 cars?b. At what volume of output will the two sites yield the same monthly profit?Silky Industries is looking for a location for its second telephone remanufacturing facility. Two cities are under consideration. The two most important location factors are: Factor A “availability of resources” and Factor B “availability of customers.” However, the company is having great difficulty assigning relative weights to these factors. Location Factor Factor Weight Factor Scorefor Each City Blake Irmo A. Availability of resources 5 6 B. Availability of customers 10 7 Total 100 Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location?
- A small producer of machine tools wants to move to a larger building, and has identified two alternatives.Location A has annual fixed costs of $700,000 and variable costs of $13,000 per unit; locationB has annual fixed costs of $820,000 and variable costs of $13,000 per unit. The finished items sellfor $17,000 each.a. At what volume of output would the two locations have the same total cost?b. For what range of output would location A be superior? For what range would B be superior?A new medical facility, Health-Watch, is to be located in Erie, Pennsylvania. The following table shows the location factors, weights, and scores (1 = poor, 5 = excellent) for one potential site. The weights in this case add up to 100 percent. A weighted score (WS) will be calculated for each site. What is the WS for this site? Location Factor Weight Score Total patient miles per month Facility utilization Average time per emergency trip Expressway accessibility Land and construction costs Employee preferences 25 20 20 15 10 10 4 3 3 4 1 5Sarah is a designer, but her passion is to paint. To pursue her passion Sarah would like to have an exhibition of her art work for a week. She contacts four landlords with a proposal of renting their places for a week and to her surprise all 4 accept the idea. Characteristics of each location are as follows: Sarah wants to know if people like her paintings enough to buy them. Decision objectives:1- Space not less than 600ft2.2- Location3- Decoration4- Facilities5- Overall budget including rent for one week not to exceed $300 Which store is Sarah going to choose for her art exhibition? Explain your chain of thoughts and the process.