Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Question
Chapter 8, Problem 17DQ
Summary Introduction
To contrast: The location of a food distributor and a supermarket.
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Maya 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? II. What information will be needed in order to use this technique? III. Setup a numerical example that can be used to demonstrate to the owner of thecompany how the technique can be used. IV. Use the numerical example set up above to demonstrate how the centre of gravitylocation technique is used.
Respond to the following statement: "The importance of location is frequently greatly exaggerated; the fact that almost every type of business is located in every region of the country indicates that locating a suitable location should be effortless.
Select two organizations, one in services and one in manufacturing. What are the key factors that each organization would consider in locating a new facility? What data would you want to collect before evaluating the location options, and how would you collect the data? Explain.
Chapter 8 Solutions
Operations Management
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
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 Plot the total cost curves in the chart provided above and identify the range over which each location would be best. Use break-even analysis to calculate exactly the break-even quantity that defines each range.arrow_forwardDescribe the four principal approaches to solve problems with the location?arrow_forwardXun Xu Health and Fitness has several productionfacilities scattered around the central and northern pa rt ofIowa. It would be desirable to have a distribution center fromwhich to send product to retailers such as Sears, WaiMart,Kmart, and large sporting equipment re tailers. Using the datain the following table, calculate the center of gravity locationfor the proposed new facility.arrow_forward
- Contrast the location of a food distributor and a supermar-ket. (The distributor sends truckloads of food, meat, produce, etc., to the supermarket.) Show the relevant considerations(factors) they share; show those where they differ.arrow_forwardA company desires to locate a new facility. Based on preliminary analysis, thechoice has been reduced to four locations: A, B, C, and D. These four locationswere rated on a scale from 1 worst to 10 best on each of four criteria. Eachcriterion was also weighted to indicate its importance (i.e., the higher theweight, the more important). The list of ratings and weights follows THE TABLE ATTACHED b- If the wights of weather and regulation be divided that the weatherwould be double of the regulations, what would be the best location. Please can you give me an answer with explanation.arrow_forwardFor each of the four types of organizations shown, rate the importance of each factor in terms ofmaking location decisions using L = low importance, M = moderate importance, and H = highimportance.Factor Local Bank Steel Mill Food Warehouse Public SchoolConvenience for customersAttractiveness of buildingNearness to raw materialsLarge amounts of powerPollution controlsLabor cost and availabilityTransportation costsConstruction costsarrow_forward
- Contract the location of a food distributor and supermarket. The distributor sends truckloads of food, meat, produce,etc. to the supermarket and directly to restaurants. Show the relevant considerations(factors) they share;show those where they differ. Explain why either, both or neither of these would benefit from clustering.arrow_forwardUnisng the information provided in the photo attached, 1. demonstrate how the centre of gravity location technique can be used to determine the best location that will minimize total travel distance. SHOW ALL WORKINGarrow_forwardExplain who do the following two methods of facility location differ in their purpose, scope, and application? Can these be used together on a problem? If yes, how: Factor rating method: Centroid method:arrow_forward
- The method for determining facility location which involves determining x and y co-ordinates of the proposed new location O a. Factor Rating Method O b. Locational Break-even Analysis O C. Transportation Method Od. Centroid Methodarrow_forwardPeter Billington Stereo, Inc., supplies car radios to auto manufacturers a nd is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs: a) Perform an analysis of the volume over which each location is preferable.b) How does your answer change if Dallas's fixed costs increase by 10%?arrow_forwardWiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year. a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?arrow_forward
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