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 9P

A

Summary Introduction

Interpretation: The total curve cost and the range in volume are to plotted and identified.

Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.

B

Summary Introduction

Interpretation: The break even quantity that defines each range is to be determined.

Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.

C

Summary Introduction

Interpretation: The location that yields the highest total profit per year is to be determined.

Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.

D

Summary Introduction

Interpretation: The minimum sales volume that makes Aspen the location of choice is to be determined.

Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.

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A 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.
A chain of home health care firms in Louisiana needsto locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scat-tered throughout the state, as detailed in the following table. Each site, except for Houma, will be visited three times each year by ateam of workers, who will drive from the central office to the site. Houma will be visited five times a year. Which coordinates rep-resent a good central location for this office? What other factors might influence the office location decision? Where would youplace this office? Explain. PXCITY MAP COORDINATESx yCovington 9.2 3.5Donaldsonville 7.3 2.5Houma 7.8 1.4Monroe 5.0 8.4Natchitoches 2.8 6.5New Iberia 5.5 2.4Opelousas 5.0 3.6Ruston 3.8 8.5
​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.
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