Introduction:
Company RL has an expanding chain of business which had grown to 705 locations with $2.6 billion in country U’s annual sales. Though there were many competitors in the market, the growing business of company RL indicated that the firm has large room for growth. The director of marketing development, Person RR, is incharge for identifying sites which will maximize the store sales without compromising existing sales.
The features for identifying a good location has not changed in the past 40 years but the time duration of decision making has been minimized due to software development. Company RL parterned with company MIC which contains powerful GIS for analyzing the trade area. MIC allows Person RR to develop psychographic profile of potential trade areas for company RL.
MIC segmented country U into 72 segements of customer profile. Person RR wants the new site to be atleast 3 mile from the exisiting RL firm and which not negatively impact its sales more than 8%. A specific spot selected lies in the hands of seven real estate brokers of company RL.
To describe: The psychological profiling clustering system by selecting an industry and explain the usage of software in the industry.
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
- Johnson & Johnson Healthcare consumer packaged goods giant Johnson & Johnson's (J&J) European operations were comprised of 12 distribution centers in seven countries. The company's initial analysis showed there was little or no consolidation among facilities. The facilities had high operational costs (U.S. $10 million+), but transportation costs were relatively low (U.S. $6 million+). The distribution centers were geographically located to help meet the specific needs and service expectations of their European customers. Since J&J is always on the lookout for ways to streamline and improve its supply chain practices, it was very interested in ways to improve its manufacturing and distribution activities in Europe. An initial result of applying the network optimization software was a reduction in the number of distribution centers from 12 to 2. Although this scenario was accompanied by increases in the transportation costs to customer locations, overall systems costs…arrow_forwardScenario:A group of University students are considering opening a new business in the Tourism sector. The product or service is a novel idea in the Tourism Sector. Notably, the tourism sector is known to be competitive. As a result, it is important for organizations to be aware of their a lternative organizational strategies. It is also important that they understand how to develop a sustainable competitive advantage. The group is also considering utilizing the strategy formulation framework to aid in developing the company and its novel products. The group is aware that there are certain habits that strategic leaders must encompass but are not sure what they are. The team is aware that they would face potential issues within strategic implementation and would like to understand how this can be remedied.The group is interested in the development of a Project Implementation Plan and have sort your expertise to develop one for the product or service in the tourism sector. N.B. An…arrow_forwardPCC Corporation has acquired a medium size family-owned textile business and is contemplating the future of one of its plants, located in Cebu City. Three alternatives are being considered: 1. Expand the plant and produce lightweight, durable materials for possible sales to the military, a market with little foreign competition; 2. Maintain status quo at the plant, continuing production of textile goods that are subject to heavy foreign competitions; or 3. Sell the plant now. If one of the first two alternatives is chosen, the plant will be sold at the end of a year. The amount of profit that could be earned by selling the plant in a year depends on foreign market conditions. The following payoff table depicts this decision situation: Foreign Competitive Conditions Decision Good Poor Expand P 800,000 P 500,000 Maintain Status Quo 1,300,000 -150,000 Sell now 320,000 320,000 What is the best decision by using the Hurwicz (with an alpha of 0.3) decision criteria? O Maintain status quo O…arrow_forward
- Green Toys Inc. makes a line of classic children’s toys constructed from recycled plastic and other recycled environmentally friendly products. Unlike its half dozen eco- friendly competitors that manufacture or buy raw materials for their toys overseas, Green Toys contracts only with companies in California. The two co- founders Von Goeben and Laurie Hymen have had no plans to move production out of the US. However, they do not exclude the possibility of manufacturing abroad with local sourcing of materials. In the Caribbean, the industry of environmentally friendly products is steeply growing and toys are no exception. Review the following case study as a guide to answer the question below. QUESTION The two CEOs of green Toys company in which you are employed as the most senior global marketing consultant have approached you to do an analysis of any Caribbean country of your choice in which to target. You are required to design a global and holistic assessment of this move…arrow_forward8.25 The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, BIA has decided it needs a second service hub on the continent, to goMrlE=ment its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in western Europe is actively bidding for BIA's business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below. a) Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft. b) After further investigation, Miller decides that an existing set of hangar facilities for repairs is not nearly as important as earlier thought. If he lowers the…arrow_forwardHow does Dell technology initiate a facilities location or relocation project? What are the pros and cons of domestic vs. international locations?arrow_forward
- ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designedarrow_forwardDefine LOCATION/DISTRIBUTION STRATEGY?arrow_forwardToyota SA Motors (TSAM) has announced a R4.28bn investment in local vehicle assembly and partssupply. Speaking at the company’s annual State of the Motor Industry address at Kyalami on Thursday,president and CEO Andrew Kirby said the lion’s share of R2.43bn would go towards the production ofa new passenger-car model from October 2021 at the Prospecton plant in KwaZulu-Natal.The new car, which he did not name, will replace the Corolla model line that will end in 2020. TSAMalso announced it will build a Toyota Hybrid Synergy Drive vehicle, in a first for the continent. Kirbysaid the investment will inject R2.85bn a year into the South African economy and create about 1,500new jobs. He noted that the deal was made possible due to industrial policy certainty in the form ofthe Automotive Production and Development Programme, the government’s incentive plan for themotor industry. The next phase of the APDP runs from 2021 to 2035.TSAM has boosted the local economy with more than R12bn in…arrow_forward
- Abu Dhabi International Book Fair and Event Management Established in 1983, from an event first held in 1981, the Abu Dhabi International Book Fair (ADIBF) is organised by the royal family (via Abu Dhabi Tourism & Culture Authority – ADTCA – and KITAB) and held at the Abu Dhabi National Exhibition Centre (ADNEC); bringing together some 904 exhibitors from around 54 countries, two thirds of which will come from Arab countries. The event showcases over half a million titles, in some 33 languages, and saw a 10 per cent increase in participants – it has been held annually, since 1993 and the 2017 event was credited to have attracted over 300,000 visitors. The organisers of the ADIBF took a stand at the Frankfurt Book Fair and hosted several events. This was all aimed at enhancing the profile of the ADIBF as well as raising awareness and networking amongst leading exhibitors, with a view to further enhancing the ADIBF. KITAB wants to confirm the ADIBF as a ‘hub’ event within the…arrow_forwardWhat is the Beachhead Strategy?arrow_forwardoperation mgt Scenario: XYZ Pty Ltd is an Australian-based renewable energy company specialising in designing and installing solar panels for commercial and residential clients. The company has operated for ten years and has built a strong reputation in the Australian market for providing high-quality and cost-effective renewable energy solutions. Intending to expand its business to new markets, XYZ Pty Ltd has identified the Dominican Republic as a potential target market due to its high solar radiation levels and growing demand for renewable energy. To assess the feasibility of entering the Dominican market, the company is conducting extensive market research to identify potential challenges and opportunities. As a result, your group has been hired as consultants and will present a report addressing the following. Write the introduction this topic.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.