Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 11P
Summary Introduction

Interpretation:Both the locations are to be evaluated and the location that should be selected for operating the specialty bagel sandwich kiosk is to be determined.

Concept Introduction:A profitability statement should be used to identify the profitability of both the locations. Location that generates the highest profitability should be chosen.

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The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the coordinates are as follows:   Location   Market Coordinates Number of Segment x y Customers 1 5   22   2,200   2 17   20   300   3 5   3   1,400   4 10   3   3,000   Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places. Cx: ____________Cy: ______________
Describe two factors that will affect the location decision of a supermarket and explain why these factors are important to the decision.
Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities Expected annual demand (sandwiches) Average variable costs per sandwich Average selling price per sandwich $12,000 30,000 $1.50 $3.25 $8,000 25,000 $1.00 $2.85
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