by••• 8.18Hyundai Motors is considering three sites-A, B, andC-at which to locate a factory to build its new-model automo-bile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variablecosts of production. Hyundai Motors has gathered the followingdata:ANNUALIZEDFIXED COSTVARIABLE COST PERAUTO PRODUCEDSITEA$10,000,000$2,500$20,000,000$2,000$25,000,000$1,000The firm knows it will produce between 0 and 60,000 Sport C150sat the new plant each year, but, thus far, that is the extent of itsknowledge about production plans.a) For what values of volume, V, of production, if any, is site C arecommended site?b) What volume indicates site A is optimal?c) Over what range of volume is site B optimal? Why? Px8.19Peggy

Break even crossover point identifying the number of units which specifying equal profit for each…

Answered: Hyundai Motors is considering three…

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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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?
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?
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.
Explain 5 consequences of location strategy?
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.
Factor(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 ________________
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…
What is Facility Planning Location Strategy? What is efficient and effective Facility Planning - Location Strategy?
Problem 03 Complying with all, government housing regulations and requirements, the employees union of a certain firm has the option to purchase either of two sites, each having an area of 18 hectares (180,000 sq.m.) of undeveloped land. The first singly owned, would cost Php20.00 a sq.m, but would needa roadway system, including the access road, 4,000 meters long, at a cost of Php 110.00 per meter. Additional development expenses would be Php 60,000 to subdivide and grade into 320 house löts, and another Php 32,000 for a hollow block fence and security gates. The second site consists of three lots, separately owned, with a total area of 18 hectares: 7 hectares at Php 25.00 a sq.m. 5 hectares at Php 21.00 a sq.m and 6 hectares at Php 14.00 a sq.m. The road system for this would be only 3,200 meters long at Php 100.00 per meter, but needs two box culverts each costing Php 25.000.00. Lot grading would be Php 35,000; fencing and security 8atës Phip 24,000. Assuming that all…
Q 3 locations have been identified as suitable options for building a new factory. The fixed and variable costs for each of the 3 potential locations has been estimated. Identify the best location when a) Demand estimate is 2000 units b) Demand estimate is 3500 units and c) Identify point of indifference between B and C (Rupees) (Rupees) Location Annual Fixed Cost Unit Variable Cost A 5,00,000 300 B 7,50,000 200 C 9,00,000 100
Q Let us assume that a new medical facility, Health-care, is to be located in XYZ city. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? Sr Location factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 10 5 4 2 Total patient per month 8 4 2 3 Average time per emergency trip 5 4 5 4 Land and construction costs 6 3 4 5 Employee preferences 7 4 4 6 Operations Facility 8 4 3
a. 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. b. The staff training centre of a telecommunications company provides training for itsregional employees every year. The capacity of the training centre was designed to train1,800 employees per year. Due to the complexity of the programmes, the mostemployees that centre can train per year is 1,400. In the past year, 1,350 employees wereMGMT2026 Production and Operations Managementtrained. Calculate:-i. The efficiency rate of the…

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