Concept explainers
A
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
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
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
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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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- Silky 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_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_forwardA small manufacturing facility is being planned that will feed parts to three heavy manufacturing facilities. The locations of the current plants with their coordinates and volume requirements are given in the following table: Use the centroid method to determine a location for this new facility.arrow_forward
- A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are shown below. Using the data in the table below, identify an optimal location for the new facility. Please show the formula used. Market Coordinates Demand A (8,6) 10 B (4,12) 15 C (3,2) 10 D (9,6) 6arrow_forwardElectroMart wants to identify a location for a warehouse that will ship to five retail stores. The coordinates and annual number of truckloads are given in the accompanying table. Develop and solve a model to find the best location, assuming that straight-line distances can be used between the locations The best location for the warehouse is at X....... and Y......... (Round to two decimal places as needed.)arrow_forwardFor 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_forward
- Let us assume that a new medical facility, Health-care, is to be located in XYZ city. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? in the following table. Which is the best location based on factor rating method? Sr Location factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 10 5 4 2 Total patient per month 8 4 2 3 Average time per emergency trip 5 4 5 4 Land and construction costs 6 3 4 5 Employee preferences 7 4 4 6 Operations Facility 8 4 3arrow_forwardRauschenberg Manufacturing is investigating which locationswould best position its new plant relative to three importantcustomers (located in cities A, B, and C). As shown in the tablebelow, all three customers require multiple daily deliveries.Management limited the search for this plant to those threelocations and compiled the following information: a. Which of these three locations yields the smallest totaltravel distance, based on Euclidean distances?b. Which of these locations is best, based on rectilineardistances?c. What are the coordinates of the center of gravity?arrow_forwardWiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!arrow_forward
- For 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_forwardAnswer the given question with a proper explanation and step-by-step solution. SC consulting, a supply chain consulting firm, must decide on the location of its home office. Its clients are located primarily in the 16 states listed in the Table provided. These are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,428, Tulsa is $131,230, Denver is $140,000, and Seattle is $145,000. The expected numbers of trips to each state and the travel costs from each potential site are shown in Table. Each consultant is expected to take at most 25 trips each year. a. If there are no restrictions on the number of consultants at a site and the goal is to minimize costs, where should the home offices be located and how many consultants should be assigned to each office? What is the annual cost in terms of the facility and travel? b. If, at most, 10 consultants are to be assigned to a home office, where…arrow_forwardThe following table shows the fixed cost and variable cost for 3 locations. Construct cost curves for these 3 locations for production from 0 to 200 units at 20 units intervals. What would be the range of production units that would give Location A a competitive advantage? What would be the range for Location B and Location C, respectively?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,