EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 8, Problem 10P
a)
Summary Introduction
To recommed: The site based on total weighted scores
Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.
b)
Summary Introduction
To determine: The changes in site decision.
c)
Summary Introduction
To determine: The rating given to proximity to port facilities in location B to improve its ranking.
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A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Georgetown and Biabou.
Calculate the weighted score for each alternative location.
Which location should be chosen?
basis
K-
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
for evaluation and has assigned rating weights from 1 to 5 on each factor. Subhajit Chakraborty, the CEO, has rated each location for each factor on a 1 to 100 point basis. In the table below, the
rating weights and the rating value for each of the locations on the factor are presented:
Factor
1
2
3
4
5
6
Factor Description
Proximity to port facilities
Power-source availability and cost
Workforce attitude and cost
Distance from Houston
Rating Weight
5
3
3
3
1
2
Location A Location B
70
70
85
75
50
65
75
60
55
10
100
50
Location C
80
100
75
60
85
90
Community desirability
Equipment suppliers in area
a) Based on the given information, the best location for Pan American Refineries is
, with a total weighted score of. (Enter your response as an integer)
b) If Location B's score for Proximity to…
Considering the following data:Location Alternatives(scored out of 100 pts each)Factors Weights A B CConvenience 0.15 86 85 78Parking Facilities 0.20 78 78 92Display Area 0.18 90 89 90Shopper Traffic 0.27 91 92 85Operating Costs 0.10 98 95 90Neighborhood 0.10 88 91 85a. Using the above factor ratings, calculate the composite score for each location.b. Determine which location alternative (A, B, or C) should be chosen on the basisof the maximum composite score.
Chapter 8 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Ch. 8 - Prob. 1EDCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQ
Ch. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 1CSCh. 8 - Prob. 2CSCh. 8 - Prob. 3CSCh. 8 - Prob. 4CSCh. 8 - Prob. 1.1VCCh. 8 - Prob. 1.2VCCh. 8 - Prob. 1.3VCCh. 8 - Prob. 2.1VCCh. 8 - Prob. 2.2VCCh. 8 - Prob. 2.3VCCh. 8 - Prob. 2.4VC
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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?arrow_forwardIn deciding on where to locate their next grocery store, Publix narrowed it down to 3 locations (St. Augustine, the Airport area, or the Westside). They are using 2 criteria to make their decisions costs (with a weight of 70%) and customer base (with a weight of 30%). Each item was scored on a 10-point scale with 10 being the highest. St. Augustine rated a score of 4 for cost and 10 for customer base; the Airport area rated a score of 6 for cost and 5 for customer base; and the Westside rated a score of 8 for cost and 2 for customer base.__________ 5a. What is the computed mean score for each of the 3 locations?__________ 5b. Which location should be chosen based on the highest score?arrow_forwardPan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oilprocessing center. T he firm has selected the six fac tors listedbelow as a basis for evaluation and has assigned rating weights from I to 5 on each factor: Subhajit Chakraborty, the CEO, has rated each location for each factor on a 1- to I 00-point basis a) Which si te will be recommended based on total weighted scores?b) If location B's score for Proximity to port facilities was reset at 90, how would the result change?c) Wha t score would location B need on Proximity to port faci lities to change its ranking?arrow_forward
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