EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 6, Problem 13PA
Summary Introduction
Interpretation: The X and Y coordinate of a facility needs to be determined based on given information using the Centre of Gravity method.
Concept Introduction: The Center of Gravity method is useful in determining suitable facility locations by keeping in mind the market demand and transportation costs.
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Students have asked these similar questions
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:
A manufacturer has decided to locate a new factory in northwestern United States to serve growing demand in that market. They have narrowed the potential sites down to two finalists, City A and City B. They have developed a list of important factors to consider in selecting a site, and rated each as shown in the following table.
FACTOR
CITY A
CITY B
Utility rates
98
114
Availability of skilled labor
82
75
Tax rates
38
38
Transportation
44
38
Proximity to suppliers
35
30
Quality of life
20
16
Based on this data, which city appears to be the better choice?
multiple choice
City A
City B
They are equally attractive
There is insufficient information provided to answer this question
A manufacturer has decided to locate a new factory in northwestern United States to serve growing demand in the market. They have narrowed the potential sites down to two finalists, City A City B. they have developed a list of important factors to consider in selecting a site and rated each as shown in the following table.
FACTOR CITY A CITY B
Utility rates 95 118
Availability of skilled labor 75 75
Tax rates 42 39
Transportaion 45 38
Proximity to suppliers 35 34
Quality of life 22 16
a. Based on this data, which city appears to be the better choice?
City B, or City A,
b. Are they equally attractive or is there insufficient information provided to answer
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup itsdistribution centre.I. What is the main objective of using this technique? II. What information will be needed in order to use this technique? III. Setup a numerical example that can be used to demonstrate to the owner of thecompany how the technique can be used. IV. Use the numerical example set up above to demonstrate how the centre of gravitylocation technique is used.arrow_forwardIdentify three important factors that a location planner may consider with respect to each of the following: A super-specialty intensive care unit An automobile manufacturing unitarrow_forwardCalculate the centre of gravity as a possible location for the new facility.arrow_forward
- The following three points are the locations of important facilities in a transportation network: (20, 20), (50, 10), and (50, 60). The coordinates are in miles.a. Calculate the Euclidean distances (in miles) between each of the three pairs of facilities.b. Calculate these distances using rectilinear distances.arrow_forwardThe operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown in Table.a. Which of the communities can be eliminated from further consideration because they are dominated (both variable and fixed costs are higher) by another community?b. Plot the total cost curves for all remaining communities on a single graph. Identify on the graph the approximate range over which each community provides the lowest cost. c. Using break-even analysis, calculate the break-even quantities to determine the range over which each community provides the lowest cost.arrow_forwardThe Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the coordinates are as follows: Location Market Coordinates Number of Segment x y Customers 1 5 22 2,200 2 17 20 300 3 5 3 1,400 4 10 3 3,000 Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places. Cx: ____________Cy: ______________arrow_forward
- Explain the following methods in location analysis: Factor Rating Method, Centre of Gravity Method, Locational Cost-Volume Method. What are the differences, disadvantages and advantages of those methods?arrow_forwardExplain what is the technique that is being used for screening potential locations for services?arrow_forwardA larger and more modern post office is to be constructed at a new location in Sally Spring Georgia. Growing suburbs caused a shift in the population density from where it was 30 years ago when the current facility was built. Andy Browne, the postmaster asked his assistants to draw a grid map of the seven points where mail is picked up and delivered in bulk. The coordinates and trips per day to and from the seven mail source points and the current main post office are shown in the table below. Calculate the centre of gravity as a possible location for the new facility.arrow_forward
- Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup its distribution centre. What is the main objective of using this technique? What information will be needed in order to use this technique? Setup a numerical example that can be used to demonstrate to the owner of the company how the technique can be used Use the numerical example set up above to demonstrate how the centre of gravity location technique is used.arrow_forwardA food manufacturer wants to locate a warehouse to serve its major The customers, annual volume, and the X and Y coordinates are shown in the table below. Customer Annual Volume X-Coordinate Y-Coordinate Judy inc. 25 3 7 Zac Supermarket 13 5 2 Harry Inc. 6 8 4 Sky Productions 4 1 5 Using the center of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products.arrow_forwardXun Xu Health and Fitness has several productionfacilities scattered around the central and northern pa rt ofIowa. It would be desirable to have a distribution center fromwhich to send product to retailers such as Sears, WaiMart,Kmart, and large sporting equipment re tailers. Using the datain the following table, calculate the center of gravity locationfor the proposed new facility.arrow_forward
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