The choice of the location for a Tiffany & Company should be determined by the compatibility with the community it will serve. True O False
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- A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near theraw materials will result in lower fixed and variable costs than locating near the market, but theowners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case. Using the following information, determinewhich location would produce the greater profit.Omaha Kansas CityAnnual fixed costs ($ millions) $1.2 $1.4Variable cost per unit $36 $47Expected annual demand (units) 8,000 12,000A company desires to locate a new facility. Based on preliminary analysis, thechoice has been reduced to four locations: A, B, C, and D. These four locationswere rated on a scale from 1 worst to 10 best on each of four criteria. Eachcriterion was also weighted to indicate its importance (i.e., the higher theweight, the more important). The list of ratings and weights follows. LocationFactor Weight A B C DWages 0.40 7 5 3 5Laborclimate 0.35 6 5 9 5Localregulation 0.15 3 4 3 2Weather 0.10 2 8 6 9a- What would be the best locationb- If the wights of weather and regulation be divided that the weatherwould be double of the regulations, what would be the best locationSilky 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. Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location
- Xun Xu Health and Fitness has several productionfacilities scattered around the central and northern pa rt ofIowa. It would be desirable to have a distribution center fromwhich to send product to retailers such as Sears, WaiMart,Kmart, and large sporting equipment re tailers. Using the datain the following table, calculate the center of gravity locationfor the proposed new facility.Select two organizations, one in services and one in manufacturing. What are the key factors that each organization would consider in locating a new facility? What data would you want to collect before evaluating the location options, and how would you collect the data? Explain.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 newly formed firm must decide on a plant location. There are 2 alternatives under consideration: locate near the major raw materials of locate near the the major customers. Locating near the raw materials will result in lower fixed costs and variable costs than locating near the market, but the owners believe ther would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case. Using the following information, determine which location would produce greater profit.. Annual Fixed costs Omaha $1.2 million, Kansas City $1.4 million Variable cost per unit Omaha $26, Kansas City $47 Expected annual demand Omaha 8000 units, Kansas City 12000 units.An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 Plot the total cost curves in the chart provided above and identify the range over which each location would be best. Use break-even analysis to calculate exactly the break-even quantity that defines each range.Identify three important factors that a location planner may consider with respect to each of the following: A super-specialty intensive care unit An automobile manufacturing unit
- A small manufacturing facility is being planned that will feed parts to three heavy manufacturing facilities. The locations of the current plats with their coordinates and volume requirements are given in the following table Plant location Coordination (x,y) Volume (parts per yr.) Peoria 292,295 3,800 Decatur 384,474 5,800 Joliet 480,181 2,800 Use the centroid method to determine the best location for this new facility (round 1 decimal pt.) please. thank youThe following businesses are considering locating in yourcommunity:a. A pizza delivery serviceb. A sporting goods storec. A small breweryd. A plant making aluminum cansDescribe the positive and negative location factors for eachof these businesses.What would be the important location factors that McDonald’s might consider before opening a new restaurant?