CONNECT F/OPERATIONS MGMT
CONNECT F/OPERATIONS MGMT
14th Edition
ISBN: 9781264344963
Author: Stevenson
Publisher: INTER MCG
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Chapter 8, Problem 1CQ
Summary Introduction

Case summary:

WM Company is the largest corporation in the globe. The company has huge success rate. Several people around the world welcome its location in their society, whereas others complain that its presence has numerous negative effects on a community ranging from traffic congestion to anti union sentiment to unfair completion.

To develop: A list of main argument, advantages and disadvantages that can be presented to the public hearing on the matter of members of each given groups.

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Walmart is one of the largest corporations in the world, and it has obviously enjoyed tremendous success. But while many welcome its location in their communities, others do not. Some complain that its presence has too many negative effects on a community, ranging from traffic congestion to anti-union sentiment to unfair competition.Suppose Walmart has announced plans to seek approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each of these groups:1. Owners of small businesses located nearby2. Town residents, and residents of nearby townsHow might a Walmart representative respond to the negative criticisms that might be brought up, and what other benefits could the representative offer the planning board to bolster Walmart’s case for gaining the board’s approval?
A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near theraw materials will result in lower fixed and variable costs than locating near the market, but theowners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case. Using the following information, determinewhich location would produce the greater profit.Omaha Kansas CityAnnual fixed costs ($ millions) $1.2 $1.4Variable cost per unit $36 $47Expected annual demand (units) 8,000 12,000
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.
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