Factors Influencing Facility Location For commercial success, and competitive advantagefollowing are the critical factors:Customer Proximity: Facility locations are selected closer to the customer as to reducetransportation cost and decrease time in reaching the customer.Business Area: Presence of other similar manufacturing units around makes business areaconducive for facility establishment.Availability of Skill Labor: Education, experience and skill of available labor are anotherimportant, which determines facility location.

Facility Location is the correct location for the assembling facility, it will have adequate…

Factors Influencing Facility Location For commercial success, and competitive advantage following are the critical factors: • Customer Proximity: Facility locations are selected closer to the customer as to reduce transportation cost and decrease time in reaching the customer.

Factors Influencing Facility Location For commercial success, and competitive advantage following are the critical factors: • Customer Proximity: Facility locations are selected closer to the customer as to reduce transportation cost and decrease time in reaching the customer.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown in Table.a. Which of the communities can be eliminated from further consideration because they are dominated (both variable and fixed costs are higher) by another community?b. Plot the total cost curves for all remaining communities on a single graph. Identify on the graph the approximate range over which each community provides the lowest cost. c. Using break-even analysis, calculate the break-even quantities to determine the range over which each community provides the lowest cost.
A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. Location Criteria Weight 1 2 3 4 Raw material availability 0.06 P VG OK VG Infrastructute 0.07 P G VG OK Transportation costs 0.33 G P OK P Labor relations 0.25 VG G P OK Quality of life 0.29 G OK P VG VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt. Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 2 3 4 ______ is the best location and _______ is the worst location.
A manufacturer has decided to locate a new factory in northwestern United States to serve growing demand in the market. They have narrowed the potential sites down to two finalists, City A City B. they have developed a list of important factors to consider in selecting a site and rated each as shown in the following table. FACTOR CITY A CITY B Utility rates 95 118 Availability of skilled labor 75 75 Tax rates 42 39 Transportaion 45 38 Proximity to suppliers 35 34 Quality of life 22 16 a. Based on this data, which city appears to be the better choice? City B, or City A, b. Are they equally attractive or is there insufficient information provided to answer
For each of the four types of organizations shown, rate the importance of each factor in terms ofmaking location decisions using L = low importance, M = moderate importance, and H = highimportance.Factor Local Bank Steel Mill Food Warehouse Public SchoolConvenience for customersAttractiveness of buildingNearness to raw materialsLarge amounts of powerPollution controlsLabor cost and availabilityTransportation costsConstruction costs
A manufacturer must choose between locating in Dallas (fixed cost of $60,000 / year and variable cost of $28 per unit) or Denver (fixed cost of $80,000 / year and variable cost of $22 per unit. Revenue per unit is $35 in either location. The expected demand is 20,000 units in Dallas and 15,000 units in Denver. ___________ 3a) Which location would produce the greater profit? ___________ 3b) How much is that profit?
Williams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one ot two cities – New Orleans and Houston. Table below provides pertinent production and distribution costs as well as plant capacities and distribution demands. Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm? From Plants To Distribution centers Normal production Unit production cost Los Angeles New York Existing plants Atlanta Tulsa $8 $4 $5 $7 600 900 $6 $5 Proposed locations New Orleans Houston $5 $4 $6 $6a 500 500 $4 (anticipated) $3 (anticipated) Forecast demand 800 1,200 2,000 a – Indicates distribution cost (shipping, handling, storage) will be $6 per…
Shoeless Joe is a specialty retailer that is deciding where tolocate a new facility. Th e annual fi xed and variable costs for eachpossible site have been estimated as follows: If demand is expected to be 2000 units, which location is best?
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The Brazilian fast growing economy has been largely dependent on its freight transport capacity. A recent study has cat-egorised the country’s containership sea port terminals into three distinct groups based on the competitiveness criteria (listed in thetable below), and their scores against the competitiveness criteria(scores between 1 and 10, and the higher scores are the better):
You may opt to work on your organization or choose an enterprise in your locality and provide the information for the following questions: 1. The locational factors considered for establishing the enterprise. 2. Strategy adopted for identifying the location [Ex: factor rating, load, distances method etc.] 3. Type of layout. 4. Physical facilities existing [line lighting ventilators, type of building etc.] Explain the importance of layout, layout planning, and layout decisions as they affect your day-to-day work and everyday life. Describe the situations/operations in your organization. From your answer in question no.2, select any two facilities and products/service in which you have encountered poor layout. Explain for each what better solutions could be for the layout problem you have identified.