Operations Management: Sustainability and Supply Chain Management Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134422404
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Question
Chapter 8, Problem 16P
a)
Summary Introduction
To determine: The production range at which each location is optimal.
b)
Summary Introduction
To determine: The best site.
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Students have asked these similar questions
Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below.
Costs
A
B
C
Fixed Costs ($)
700,000
1,000,000
1,100,000
Variable ($ per unit)
28
20
18
Identify the range over which each alternative (A, B and C) is best.
A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. The factor weights and the consultant team scores are given in table 5 below. Scores are based on 50 = best.
Locations
Factors
Weights
A
B
C
Labor Climate
10
35
45
20
Taxes
30
30
40
40
Utilities
20
25
20…
The fixed and variable costs for three potential manu-facturing plant sites for a rattan chair weaver are shown:
SITE FIXED COST PER YEAR VARIABLE COST PER UNIT1 $ 500 $112 1,000 73 1,700 4a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best?
The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:
Site
Fixed Cost Per Year
Variable Cost per Unit
1
$800
$10.00
$5.00
$4.00
$1,100
3
$2,100
a) Afteř rounding to the nearest whole number, site 1 is best below
V units.
After rounding to the nearest whole number, site 2 is best between
V and
V units.
After rounding to the nearest whole number, site 3 is best above
V units.
b) If the demand is 1010 units, then the best location for the potential manufacturing plant is
Chapter 8 Solutions
Operations Management: Sustainability and Supply Chain Management Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 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. 9DQCh. 8 - Prob. 10DQ
Ch. 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. 25PCh. 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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