MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
12th Edition
ISBN: 9780134742366
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 13, Problem 3VC
Summary Introduction
Interpretation: The approach to the proposal of establishing a plant at a location just because low cost labor is available is to be explained.
Concept Introduction: The overall business requirement of locating a new plant at a certain location is not to minimize the labor cost but to maximize profits and business. Therefore it is never enough for a location to have low labor cost as a deciding factor.
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Discuss why locating a plant solely on the basis of low labor costs may be the wrong approach ?
Explain why locating a plant solely on the basis of low labor costs may be the wrong approach.
What is plant location? Discuss the steps to be taken in choosing a plant location
Chapter 13 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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
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- There are certain constraints to be considered while selecting the location of a plant. List them and briefly explain?arrow_forwardWhen an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardWhat are the advantages and disadvantages of using the weighted factor method, centre of gravity method and location break even analysis in operations management when looking at locationsarrow_forward
- 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 a line chart and identify the range over which each location would be best.arrow_forwardShoeless Joe is a specialty retailer that is deciding where tolocate a new facility. Th e annual fi xed and variable costs for eachpossible site have been estimated as follows: If demand is expected to be 2000 units, which location is best?arrow_forwardThe fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown here: a) Graph the total-cost lines for the four potential sites.b) Over what range of annual volume is each location the preferable one (that with lowest expected cost)?c) If expected volume of the ski equipment is 5,000 units, which location would you recommend?arrow_forward
- Use the centroid method to determine the best location for this new facility.arrow_forwardWhat would be the important location factors that McDonald’s might consider before opening a new restaurant?arrow_forwardA firm that recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi MS; or Birmingham, AL. Prepare an economic analysis of the three locations giving the following information. Annual costs for building, equipment, and administration would be $64,000 for Memphis, $74,000 for Biloxi, and $109,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $6 per unit in Biloxi, and $6 per unit in Birmingham. The Memphis location would increase system transportation costs by $63,000 per year, the Biloxi location by $73,500 per year, and the Birmingham location by $25,900 per year. Expected annual volume is 14,900 units. Total Cost Memphis _______________ Biloxi _______________ Birmingham _________________arrow_forward
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