Operations Management
Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter 8, Problem 10P

a)

Summary Introduction

To determine: The site that is recommended based on total weighted scores.

b)

Summary Introduction

To determine: The change in the result.

c)

Summary Introduction

To determine: The scored needed by location B.

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Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-processing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weightsfrom 1 to 5 on each factor:FACTOR FACTOR NAME RATING WEIGHT1 Proximity to port facilities 52 Power-source availability and cost 33 Workforce attitude and cost 44 Distance from Houston 25 Community desirability 26 Equipment suppliers in area 3Subhajit Chakraborty, the CEO, has rated each location for eachfactor on a 1- to 100-point basis.FACTOR LOCATION A LOCATION B LOCATION C1 100 80 802 80 70 1003 30 60 704 10 80 605 90 60 806 50 60 90a) Which site will be recommended based on total weightedscores?b) If location B’s score for Proximity to port facilities was resetat 90, how would the result change? c) What score would location B need on Proximity to port facili-ties to change its ranking?
A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. 2 3 4 -Select- is the best location and -Select- -Select- Location 1 Location 2 Location 3 Location 4 Criteria Raw material availability Infrastructure Transportation costs Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 is the worst location. Labor relations Quality of life Weight 0.11 0.13 0.23 0.23 0.30 1 VG G P G G W Location 2 OK OK OK P VG 3 OK VG OK VG G VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt. 4 OK OK G VG OK
A clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. Factor Description Average community income Community growth potential Availability of public transportation Factor Weight .40 Barclay Chester 30 20 .25 40 30 .15 20 20 Labor cost What is the score for Barclay? 4 .20 10 30 24.50 10.00 100.00 27.00 25.75
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