In a site selection problem, a common goal is to identify the set of locations that provides adequate service at theminimum cost.True or FalseTrueFalse

The production plant is in the ideal position, as it will have easy access to clients, employees,…

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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A chain of home health care firms in Louisiana needsto locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scat-tered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited three times each year by ateam of workers, who will drive from the central office to the site. Houma will be visited five times a year. Which coordinates rep-resent a good central location for this office? What other factors might influence the office location decision? Where would youplace this office? Explain. PXCITY MAP COORDINATESx yCovington 9.2 3.5Donaldsonville 7.3 2.5Houma 7.8 1.4Monroe 5.0 8.4Natchitoches 2.8 6.5New Iberia 5.5 2.4Opelousas 5.0 3.6Ruston 3.8 8.5
A dental care facility location analysis has been narrowed down to two locations in Alexandria; Stanley and Camp-Cesar. The main factors in the decision will be the supply of dental clinic raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Stanley 60, 80, and 70, respectively; for Camp-Cesar 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the facility OM should: A. be indifferent between these locationsB. choose StanleyC. choose Camp-CesarD. reject both locationsE. build a dental care facility in both districts.Why? – Comment to justify your (the OM) decision.
The firm has identified two potential sites for a third raw material source; these are identified as Candidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2, and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever it is located, will have a capacity of 500 units. Solve with the transportation method. Which site should be selected
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? 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
DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2010 to be 180,000 units in the South; 120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be? New York Atlanta Chicago San Diego Annual fixed cost of 200,00 plant $6 miilion 5.5 million 5.6 million 6.1 million Annual fixed cost of 400,000 $10 million $9.2 million 9.3 million 10.2 million EAST $211 $232 $238 $299 SOUTH $232 $212…
Grave City is considering the relocation of several police substations to obtain better enforcement in high-crime areas. The locations under consideration together with the areas that can be covered from these locations are given in the following table: Potential Locationsfor Substations Areas Covered A 1, 5, 7 B 1, 2, 5, 7 C 1, 3, 5 D 2, 4, 5 E 3, 4, 6 F 4, 5, 6 G 1, 5, 6, 7 Formulate an integer programming model that could be used to find the minimum number of locations necessary to provide coverage to all areas.
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.
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?
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?
Joe’s Sports Supplies Corporation is considering whereto locate its warehouse in order to service its four stores in fourtowns: A, B, C, and D. Two possible sites for the warehouse arebeing considered, one in Jasper and the other in Longboat. Th efollowing table shows the distances between the two locationsbeing considered and the four store locations. Also shown are theloads between the warehouse and the four stores. Use the load–distance model to determine whether the warehouse should belocated in Jasper or in Longboat.
Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. Thefollowing table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is I through 5. a) Which site should Tracy choose?b) If site D 's score for Energy costs increases from a 3 to a 5, do results change?c) If site A's Weather score is adj usted to a 4, what is the impact? What should Tracy do at this point?
Balfour’s is considering building a plant in one of three possible locations. They have estimated the following parameters for each location: Location Fixed Cost Variable Cost Waco, Texas $300,000 $5.75 Tijuana, Mexico $800,000 $2.75 Fayetteville, Arkansas $100,000 $8.00 For what unit sales volume should they choose each location?

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In a site selection problem, a common goal is to identify the set of locations that provides adequate service at the minimum cost. True or False True False