OPERATIONS MANAGEMENT CUSTOM ACCESS
OPERATIONS MANAGEMENT CUSTOM ACCESS
11th Edition
ISBN: 9780135622438
Author: KRAJEWSKI
Publisher: PEARSON EDUCATION (COLLEGE)
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Chapter 13, Problem 6P
Summary Introduction

Interpretation: Using the load-distance model, the more cost effective city is to 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 are brought together for progress of business.

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A personal computer manufacturer plans to locate its assembly plant in Taiwan and to ship its computers back to the United States through either Los Angeles or San Francisco. It has distribution centers in Atlanta, New York, and Chicago and will ship to them from whichever city is chosen as the port of entry on the West Coast. Overall transportation cost is the only criterion for choosing the port. Use the load-distance model and the information in table below to select the more cost effective city. (Round all intermediate calculations to two decimal places.) Port of Entry The cost of port at Los Angeles is $ The cost of port at San Francisco is $ Distance and Costs for PC Manufacturer Los Angeles Distance (miles) Shipping cost ($/unit) Distribution Center (units/year) Atlanta (8,250) Chicago (8,900) 1,800 0.0015/mile 2,600 0.0015/mile San Francisco Distance (Miles) Shipping cost ($/unit) (Enter your response rounded to the nearest whole number.) (Enter your response rounded to the…
6. A personal computer manufacturer plans to locate its as- sembly plant in Taiwan and to ship its computers back to the United States through either Los Angeles or San Francisco. It has distribution centers in Atlanta, New York, and Chicago and will ship to them from whichever city is chosen as the port of entry on the west coast. Overall transportation cost is the only criterion for choosing the port. Use the load- distance model and the information in Table 13.5 to select the more cost-effective city.
DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, it uses its own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table.  CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 340 865 85 Syracuse 1,435 915 89 Albany 2,315 645 129 New York City 2,290 45 69
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