OPERATIONS MANAGEMENT CUSTOM 12E >C<
18th Edition
ISBN: 9781323889503
Author: HEIZER
Publisher: PEARSON C
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Question
Chapter 8, Problem 18P
a)
Summary Introduction
To determine :The volumes at which site C is the most cost effective.
Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.
b)
Summary Introduction
To determine : The volume at which site A is optimal.
c)
Summary Introduction
To determine : The volume at which site B is optimal.
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Students have asked these similar questions
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 C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data:
Site
Annualized Fixed Cost
Variable Cost per Auto Produced
A
$10,000,000
$2,600
B
$20,000,000
$1,900
C
$30,000,000
$1,100
The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.
a) The value of volume, V, of production above which site
C
is recommended =
nothing
Sport C150s (round your response up to the next whole number).
b) The value of volume, V, of production below which site
A
is…
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?
A location analysis has been narrowed down to two locations, A and B. The main factors in the decision will be supply of raw materials, which has a weight of .50, transportation cost, which has a weight of 0.4, and labour cost, which has a weight of .10. The ratings for raw materials, transportation, and labour are for A-60, 80, and 70, respectively; for B-70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
options:
choose location B
none of the choices
reject both locations
choose location A
be indifferent between these locations
Chapter 8 Solutions
OPERATIONS MANAGEMENT CUSTOM 12E >C<
Ch. 8 - Prob. 1EDCh. 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. 9DQ
Ch. 8 - Prob. 10DQCh. 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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