Operations Management In The Supply Chain Decisions And Cases 7th
7th Edition
ISBN: 9781259718779
Author: Roger G Schroeder And Susan Meyer Goldstein
Publisher: McGraw Hill Education
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Chapter 18, Problem 6P
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To decide: On the warehouse location based on the center of gravity method.
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Using the center-of-gravity model, locate the X and Y coordinates of a warehouse to serve three different customers as follows:
how many warehouses and DCs are operated by Best Buy, Target, or another large retailer. What is the ratio of DCs and warehouses to the number of retail stores for each of these? What factors affect this ratio?
Contrast the location of a food distributor and a supermar-ket. (The distributor sends truckloads of food, meat, produce,
etc., to the supermarket.) Show the relevant considerations(factors) they share; show those where they differ.
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Operations Management In The Supply Chain Decisions And Cases 7th
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- Suppose that you are an engineer tasked with finding a new location for your distribution center (let's say you work as an industrial engineer at a cosmetics company). You have a good idea of who your customers are and how many tons of cosmetics you must ship per week. Using your company headquarters as the origin, you plot out the following table: Customer x-location (miles) y-location (miles) Quantity (tons/week) JC Penney 10 280 3 BB&B 70 180 7 Target 80 160 4 Bath&Body Works 170 20 5 Walmart…arrow_forwardWhat are the key factors in deciding where to locate a central distribution centre for a store like Pick and Pay or wall martarrow_forwardWeighted factor methodUse the table to calculate the most ideal X coordinate for supermarket Point Quantity offered/requested Transportation costs Coordinate X Coordinate Y Supermarket 1 3,000 0.04 4 8 Supermarket 2 3,500 0.04 7 2 Supermarket 3 2,000 0.07 3 5 Supermarket 4 1,500 0.07 7 4 Supermarket 5 1,200 0.07 6 8arrow_forward
- 1. Read each of the following statements and determine which method of transportation is the best option. Provide a reason for your choice. Oil shipping from an oil field in Oklahoma to a refinery in Houston, Texas. a. b. Corn transported from a farm to a local grain elevator. C. Farm equipment manufactured in Canada transported to a warehouse in Wisconsin. d. Cut flowers sent from Hawaii to California.arrow_forwardA supplier to the electric utility industry produces power generators; the transportation costs are high. One market area includes the lower part of the Great Lakes region and the upper portion of the southeastern region. More than 600,000 tons are to be shipped to eight major customer locations as shown below:Customer Location Tons Shipped x, y CoordinatesC1: Three Rivers, MI 5,000 (7, 13)C2: Fort Wayne, IN 92,000 (8, 12)C3: Columbus, OH 70,000 (11, 10)C4: Ashland, KY 35,000 (11, 7)C5: Kingsport, TN 9,000 (12, 4)C6: Akron, OH 227,000 (13, 11)C7: Wheeling, WV 16,000 (14, 10)C8: Roanoke, VA 153,000 (15, 5)What is the center of gravity for the electric utilities supplier? Using rectilinear distance, what is the resulting load–distance score for this location?arrow_forwardExplain how these factors would impact Garden-William. Argue whether having a warehouse located in South Africa would be beneficial for Garden-William Logisticsarrow_forward
- The ABC Company plans to locate a warehouse using the center-of-gravity model to serve four different customers. Find the coordinates for the warehouse given the following information:arrow_forwardTransport provides both time and place utility . Select one : a . False b . Truearrow_forwardGive a retail merchandise or service that you would like to develop, produce and market. Then, determine which location best suits your retailing business objective. Explain your answer.arrow_forward
- Suppose that you own a freight forwarder company. One of your customers “ELAR A.Ş.” called you on JANUARY 2022 and asked for the freight offer for the transportation of five TEU (your cost object) products from location X to location Y.You are supposed to give a reasonable freight offer to your customer. Your profit margin is 25 %. First find the cost, then add 25 % profit margin to find the customer price. Use job costing and normal costing.a) Choose Location X and Y, explain your route and transportation modes. Explain whether the transportation is door to door or not. You can use one, two or three modes of transportation to carry out this transaction.b) Identify and LIST the direct costs of the job. Calculate the total direct costs of the job.c) Budget and LIST the indirect costs of your company for all jobs in 2022. Calculate the total indirect costs of your company for 2022. d) Select your allocation base and compute the allocation rate per unit. You may use multiple allocation…arrow_forwardDescribe some of the key factors that guide service and retail location decisions.arrow_forward1. Using the Simple Moving Average OR Weight moving average calculate sales forcast for the next period. 2. Comment on the appropriateness of this methodarrow_forward
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