EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 6, Problem 1CQD
Summary Introduction
Interpretation:
Center of gravity for the population and the best stadium location.
Concept Introduction:
Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.
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Students have asked these similar questions
For example, a manager for Wal-Mart may have sufficient secondary data onincomes, family sizes, number of competitors, and growth potential to determine in which of five Iowa towns Wal-Mart wishes to locate its next store. And if traffic counts exist for the selected town, primary data will have to be gathered to select a specific site for the store.
True
False
Which question should be posed in determining the accuracy of secondary data?
A.
What information was collected?
B.
What was the purpose of the study?
C.
Both a & b.
D.
Neither a nor b.
Use the centroid method to determine the best location for this new facility.
Explain the a ssumptions behind the center-of-gravity method. How can the model be used in a service facility location?
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- A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. For which volume of business would the two locations be equally attractive (Hint: the crossover point)? Please show your work. New Jersey Delaware Variable Costs ($ per unit) _____ (Please pick a number from 11-20 and fill in the blank above. Use the number for your calculation.) _____ (Please pick a number from 21-30 and fill in the blank above. Use the number for your calculation.) Fixed Costs $___________ (Please pick a number from 1,000,000-1,200,000 and fill in the blank above. Use the number for your calculation.) $___________ (Please pick a number from 800,000-1,000,000 and fill in the blank above. Use the number for your calculation.)arrow_forwardThe method for determining facility location which involves determining x and y co-ordinates of the proposed new location O a. Factor Rating Method O b. Locational Break-even Analysis O C. Transportation Method Od. Centroid Methodarrow_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. Mail Source Point Round Trips per day X coordinate Y coordinate 1 6 2 8 2 3 6 1 3 3 8 5 4 3 13 3 5 2 15 10 6 7 6 14 Calculate the center of gravity as a possible location for the new facility. Can you please show me how you arrived at the answer?arrow_forward
- A 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_forwardART Contractors must locate an equipment staging area to serve three construction sites, located at coordinates (0,2), (0,4), and (5,5). Traffic between the staging area and each of the three sites will be equal. What is the best set of coordinates for the equipment staging area? Please show the math.arrow_forwardWalmart is one of the largest corporations in the world, and it has obviously enjoyed tremendous success. But while many welcome its location in their communities, others do not. Some complain that its presence has too many negative effects on a community, ranging from traffic congestion to anti-union sentiment to unfair competition.Suppose Walmart has announced plans to seek approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each of these groups:1. Owners of small businesses located nearby2. Town residents, and residents of nearby townsHow might a Walmart representative respond to the negative criticisms that might be brought up, and what other benefits could the representative offer the planning board to bolster Walmart’s case for gaining the board’s approval?arrow_forward
- Select two organizations, one in services and one in manufacturing. What are the key factors that each organization would consider in locating a new facility? What data would you want to collect before evaluating the location options, and how would you collect the data? Explain.arrow_forwardA company desires to locate a new facility. Based on preliminary analysis, thechoice has been reduced to four locations: A, B, C, and D. These four locationswere rated on a scale from 1 worst to 10 best on each of four criteria. Eachcriterion was also weighted to indicate its importance (i.e., the higher theweight, the more important). The list of ratings and weights follows THE TABLE ATTACHED b- If the wights of weather and regulation be divided that the weatherwould be double of the regulations, what would be the best location. Please can you give me an answer with explanation.arrow_forwardIf there are five factories in the district, with locations and size given in the following table, use the center-of-gravity method to determine at which factory the central office should be placed to minimize the average distance between the office and employees. Location A B C D E (X,Y) (5,5) (0,5) (0,0) (5,0) (2,1) Size (Employees) 2500 1000 10000 4500 7500arrow_forward
- A firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location. Use algebra to determine the crossover points.arrow_forwardSam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities Expected annual demand (sandwiches) Average variable costs per sandwich Average selling price per sandwich $12,000 30,000 $1.50 $3.25 $8,000 25,000 $1.00 $2.85arrow_forwardAs an operation manager, you are given the task for preparing a location proposal for a new facility. Please discuss the Do’s and Don’ts you should consider in your proposal before recommending the new facility.arrow_forward
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