Operations Management: Sustainability and Supply Chain Management, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134471815
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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The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best?
Accel Express, Inc., collected the following information on where to locate a warehouse (1 = poor, 10 = excellent):
Location Score
Location Factor
Factor Weight
A
B
Construction costs
10
8
5
Utilities available
10
7
7
Business services
10
4
7
Real estate cost
20
7
4
Quality of life
20
4
8
Transportation
30
7
6
a. Which location, A or B, should be chosen on the basis of the total weighted score?b. If the factors were weighted equally, would the choice change?
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?
Chapter 8 Solutions
Operations Management: Sustainability and Supply Chain Management, Student Value Edition 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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- Let us assume that a new medical facility, Health-care, is to be located in ABC city. The location factors, weights, and scores (1 = poor, 5 = excellent) for three potential sites are shown in the following table. What is the weighted score for these sites? Which is the best location Sr. Location factor Weight Scores Location 1 Location 2 Location 3 1 Facility utilization 25 3 5 6 2 Total patient per month 25 4 3 5 3 Average time per emergency trip 20 4 3 5 4 Land and construction costs 15 1 4 2 5 Employee preferences 25 5 3 5arrow_forwardIn which of the following site selection techniques, a weightage between ‘0’ to ‘1’ is provided to factors that influence its location decision?(a) Location rating factor technique(b) Transportation technique(c) Centre-of-gravity technique(d) None of thesearrow_forwardCalculate the weighted score for each location (A, B, C, and D) shown in Table. Which location would you recommend? Factor Score for Each Location Location Factor Factor Weight A B C D 1. Labor climate 2. Quality of life 3. Transportation system 4. Proximity to markets 5. Proximity to materials 6. Taxes 7. Utilities Total 5 30 5 25 5 15 15 100 5 2 3 5 3 2 5 4 3 4 3 2 5 4 3 5 3 4 3 5 2 5 1 5 4 5 4 1arrow_forward
- Hyundai Motors is considering three sites- A, B, and C- at which to locate a factory to build its new-model automobile, the Hyundai Sport CJSO. The goal is to locate at a minimum-costsi te, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: The firm knows it will produce between 0 and 60,000 Sport Cl50s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.a) For what values of volume, V, of production, if any, is site C a recommended site?b) What volume indicates site A is optimal?c) Over what range of volume is site B optimal? Why?arrow_forwardA location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers,testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors. their weights, and the ratings for each location are shown in the following table. High scores represent favorable values a) Compute the composite (weighted average) rating for each location.b) Which site would you choose?c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recompute as necessary and explain.arrow_forwardA small producer of machine tools wants to move to a larger building, and has identified two alternatives.Location A has annual fixed costs of $700,000 and variable costs of $13,000 per unit; locationB has annual fixed costs of $820,000 and variable costs of $13,000 per unit. The finished items sellfor $17,000 each.a. At what volume of output would the two locations have the same total cost?b. For what range of output would location A be superior? For what range would B be superior?arrow_forward
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