CONNECT F/OPERATIONS MGMT
14th Edition
ISBN: 9781264344963
Author: Stevenson
Publisher: INTER MCG
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Chapter 8, Problem 15P
Summary Introduction
To determine: Select the better site using center of gravity.
Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.
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An analysis of sites for a distribution center has led to two possible sites (L1 and L2 on the map). The sites are comparable on every key factor. The one remaining factor is the center of gravity. Use the center of gravity method to select the better site. Monthly shipments will be the quantities listed in the table.
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?
Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup itsdistribution centre.Setup a numerical example that can be used to demonstrate to the owner of thecompany how the center of gravity technique can be used.
Chapter 8 Solutions
CONNECT F/OPERATIONS MGMT
Ch. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQCh. 8.3 - Prob. 3RQCh. 8 - Prob. 1DRQCh. 8 - Prob. 2DRQCh. 8 - Prob. 3DRQCh. 8 - Prob. 4DRQCh. 8 - Prob. 5DRQCh. 8 - Prob. 6DRQCh. 8 - Prob. 7DRQ
Ch. 8 - Prob. 8DRQCh. 8 - Prob. 9DRQCh. 8 - Prob. 1TSCh. 8 - Prob. 2TSCh. 8 - Prob. 3TSCh. 8 - Prob. 1CTECh. 8 - Prob. 2CTECh. 8 - Prob. 3CTECh. 8 - Prob. 4CTECh. 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. 1CQ
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Similar questions
- Factor rating. Determine which location has the higher factor rating given the following information.arrow_forwardABC Ltd. 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 the break-even analysis location technique to help determine which location is best based on costs. I. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed above.arrow_forwardMr. Ramjan wants to use the centre of gravity location technique and the break-even location technique to aid with his location decision for a distribution centre. Using a quantitative example for each technique, show how they can be used to aid in making the right decision in regard to the location of this distribution centrearrow_forward
- Use the photo attached to answer the following question, 1.Using the centre of gravity location technique, determine the best location that will minimize total travel distance. SHOW WORKINGarrow_forwardA 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 answerarrow_forwardIndicate the general patterns for service and manufacturing activities that you see as location?arrow_forward
- What are the differences between service and industrial-sector location analysis?arrow_forwardMaya 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?arrow_forwardExplain some major factos that firms consider when choosing a country in which to locate ?arrow_forward
- 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 questionarrow_forwardA manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented in the table below. Table 1 Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 Indicate over what range, each of the alternatives A, B, C is the low-cost choice.arrow_forwardBased on Pick and Pay's new distribution centre site, what factors must be considered on where to locate its CDC?arrow_forward
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