Concept explainers
A
Interpretation: The location that yields smallest travel distance based on Euclidean distances 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.
B
Interpretation: The best location based on rectilinear distance 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.
C
Interpretation: The co-ordinates of center of gravity 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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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- 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_forwardAn 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.arrow_forwardFor each of the location problems described, discuss which of the seven assumptions listed in this section are likely to be violated:b. Locating an international network of telecommunications facilities.arrow_forward
- Describe the four principal approaches to solve problems with the location?arrow_forwardThe Spencer Shoe Company manufactures a line of inexpensive shoes in one plant in Pontiac and distributes to five main distribution centers (Milwaukee, Dayton, Cincinnati, Buffalo, and Atlanta) from which the shoes are shipped to retail shoe stores. Distribution costs include freight, handling, and warehousing costs. To meet increased demand, the company has decided to build at least one new plant with a capacity of 40,000 pairs per week. Surveys have narrowed the choice to three locations, Cincinnati, Dayton, and Atlanta. As expected, production costs would be low in the Atlanta plant, but distribution costs are relatively high compared to the other two locations. Other data are as follows. Assume that Spencer Shoe Company will keep operating at Pontiac and build a plant at one of the three new alternatives. Which alternative will lead to the lowest total cost, including production, distribution, and fixed costs, and what is the minimum weekly cost? Distribution costs per pair…arrow_forwardAnswer the given question with a proper explanation and step-by-step solution. Medco plans to open a new medical center and is looking for a suitable location. They have narrowed their choice down to three locations, on Oak, Elm, and Ash Streets. They have defined four factors and have assigned weights to these factors as follows: proximity to hospitals (40), customer parking (30), appearance (20), and ease of expansion (10). They then rated the three locations for the four factors, using a scale of one to five. Their ratings are as follows: Location Factor Weight Oak Elm Ash Proximity to hospitals 40 2 5 3 Customer parking 30…arrow_forward
- For each of the location problems described, discuss which of the seven assumptions listed in this section are likely to be violated:d. Locating spare parts depots to support a field repair organization.arrow_forwardART Contractors must locate an equipment staging area to serve three construction sites, located at coordinates (0,2), (0,4), and (5,5). Traffic between the staging area and each of the three sites will be equal. What is the best set of coordinates for the equipment staging area? Please show the math.arrow_forwardUsing the grid technique, determine the least-cost location for the following problem:arrow_forward
- 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.arrow_forwardSilky 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. Location Factor Factor Weight Factor Scorefor Each City Blake Irmo A. Availability of resources 5 6 B. Availability of customers 10 7 Total 100 Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location?arrow_forwardSilky 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 locationarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,