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: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 3P

A

Summary Introduction

Interpretation: The intersection of suitable site should be determined.

Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital is brought together for progress of business.

B

Summary Introduction

Interpretation: The rectilinear weekly load distance score for the location should be concluded.

Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital is brought together for progress of business.

C

Summary Introduction

Interpretation: The time taken from the center of gravity to the farthest demand location is to be calculated.

Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital is brought together for progress of business.

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Suppose that you are an engineer tasked with finding a new location for your distribution center (let's say you work as an industrial engineer at a cosmetics company). You have a good idea of who your customers are and how many tons of cosmetics you must ship per week. Using your company headquarters as the origin, you plot out the following table: Customer                                     x-location (miles)    y-location (miles)    Quantity (tons/week) JC Penney                                              10                               280                                  3 BB&B                                                     70                              180                                  7 Target                                                    80                               160                                  4 Bath&Body Works                                170                              20                                   5 Walmart…
Rent’R Cars is a multisite car rental company in Huntsville/Madison area. It is trying out a new “return the car to the location most convenient for you” policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle availability at the renting facility. The supply and demand for economy cars, cost of moving vehicles between sites per vehicle are shown below.   From  / To D E F G Supply A $9 $8 $6 $5 50 B   9   8   8    0 40 C   5   3   3   10 75 Demand 50 60 25 30     a.)Draw a diagram by showing supply points, demand points, and connecting arcs.  b.)Define variables, write the objective function and constraints.  c.)Prepare an initial Excel worksheet, check your formulas, and save it. d.)Complete solver parameters, copy it, and save as a file.
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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