Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 3DQ
Summary Introduction
Interpretation: The ethical and environmental factors should be discussed that the U.S. firm should consider regarding the plant location.
Concept Introduction: Ethical conduct and environmental conformance to local and international regulation is an essential criterion for companies to function. Compliance with the occupational safety and health administration regulations not only keeps the firm on the right side of the authorities but also goes a long way in promoting the morale and motivation of the employees.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A firm in Ohio is thinking of buying a plant from a regional business group located in a Southeast Asian country. The business group selling the plant has questionable labor and management practices, some of which are also in conflict with the OSHA (Occupational Safety and Health Administration) and EPA (Environmental Protection Agency) regulations. What ethical and environmental factors should the U.S. firm consider before finalizing the plant location decision?
Fall-Line, Inc., is a Great Falls, Montana, manufacturer of a variety of downhill skis. Fall-Line is considering four locations for a new plant: Aspen, Colorado; Medicine Lodge, Kansas; Broken Bow, Nebraska; and Wounded Knee, South Dakota. Although Aspen's fixed and variable costs are dominated by those of the other communities, Fall-Line believes that both the demand and the price would be higher for skis made in Aspen than for skis made in the other locations. The following table shows those projections along with the annual fixed costs and variable costs per pair of skis for each location:
a. What break-even quantity defines each location?
b. What break-even quantity defines each range?
c. Determine which location yields the highest total profit per year.
d.
Brian Trump has obtained fixed- and variable-cost information for four potential sites for his professional wrestling school and summarized it in tabular form below. All values are in dollars.
Site
Fixed Cost
Variable Cost
A
10,000
24
B
12,000
20
C
14,000
18
D
16,000
17
Brian plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 700 students will matriculate each year, which site will result in the lowest total cost?
Chapter 13 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7P
Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 1AMECh. 13 - Prob. 2AMECh. 13 - Prob. 3AMECh. 13 - Prob. 4AMECh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.arrow_forwardExotech Computers manufactures computer components such as chips, circuit boards, motherboards, keyboards, LCD panels, and the like, and sells them around the world. It wants to construct a new warehouse and distribution center in Asia to serve emerging markets there. It has identified sites in Shanghai, Hong Kong, and Singapore and has graded the important weighted decision criteria for each site as follows: Recommend a site based on these decision criteria and grades.arrow_forwardAnswer the given question with a proper explanation and step-by-step solution. SC consulting, a supply chain consulting firm, must decide on the location of its home office. Its clients are located primarily in the 16 states listed in the Table provided. These are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,428, Tulsa is $131,230, Denver is $140,000, and Seattle is $145,000. The expected numbers of trips to each state and the travel costs from each potential site are shown in Table. Each consultant is expected to take at most 25 trips each year. a. If there are no restrictions on the number of consultants at a site and the goal is to minimize costs, where should the home offices be located and how many consultants should be assigned to each office? What is the annual cost in terms of the facility and travel? b. If, at most, 10 consultants are to be assigned to a home office, where…arrow_forward
- 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.arrow_forwardA chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited three times each year by a team of workers, who will drive from the central office to the site. Houma will be visited five times a year. Which coordinates represent a good central location for this office? What other factorsmight influence the office location decision? Where would youplace this office? Explain.arrow_forwardGiven: Shop‐n‐Go is seeking the optimal site for their new premium strip mall in Suburbanville, CA. There are four locations under consideration (Sites 1 through 4). The company’s operations manager and his facility location team have identified seven primary location factors that should be considered when choosing the optimal location. Each factor was assigned a weight from 1 – lowest to 10 – highest. Each site under consideration was rated from 1 – poor to 10 – great based on each factor. Use the factor‐ rating method and the criteria specified below to rank each site from best to worst based on the factors identified. a) Rank the sites from best to worst based on all seven factors. b) Rank the sites from best to worst if the operating costs are not factored into the evaluation.arrow_forward
- Why are most location decisions analyzed by a team of managers instead of a single person? What types of teams are suggested as being helpful to the task of logistics network redesign?arrow_forwardA British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the M idwest, a region with which its director, Doug Moodie, is comfortablebecause he got his medical degree at Northwestern University. After a preliminary a nalysis, four cities are chosen for further consideration. They are rated and weighted according to the factors shown below: a) Which city should Moodie select?b) Assume a minimum score of 5 is now required for a ll factors. Which city should be chosenarrow_forwardThe manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below: Locations Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 i. Based on costs, over what range of units will location A be preferred?ii. Based on costs, over what range of units will location B be preferred?iii. Based on costs, over what range of units will location C be preferred?arrow_forward
- Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!arrow_forwardUsing the grid technique, determine the least-cost location for the following problem:arrow_forwardFall-Line, Inc., is a Great Falls, Montana, manufacturer of a variety of downhill skis. Fall-Line is considering four locations for a new plant: Aspen, Colorado; Medicine Lodge, Kansas; Broken Bow, Nebraska; and Wounded Knee, South Dakota. Annual fixed costs and variable costs per pair of skis are shown in the following table: Location Annual Fixed Costs Variable Cost per Pair Aspen Medicine Lodge Broken Bow Wounded Knee $8,000,000 $2,400,000 $3,400,000 $4,500,000 $250 $130 $90 $65 a. Plot the total cost curves for all the communities on a single graph. Identify on the graph the range in volume over which each location would be best.b. What break-even quantity defines each range? Although Aspen’s fixed and variable costs are dominated by those of the other communities, Fall-Line believes that both the demand and the price would be higher for skis made in Aspen than for skis made in the other locations.The following table shows those projections: Location Price per…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,