Pearson Etext For Principles Of Operations Management: Sustainability And Supply Chain Management -- Access Card (11th Edition)
Pearson Etext For Principles Of Operations Management: Sustainability And Supply Chain Management -- Access Card (11th Edition)
11th Edition
ISBN: 9780135639122
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 8, Problem 1P
Summary Introduction

To decide: Based on labor costs only, which location should be chosen among the three locations.

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.

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In Myanmar (formerly Burma), 61aborers, each makingthe equivalent of $3 per day, can produce 40 units per day. Inrural China, 10 laborers, each making the equivalent of $2 perday, can produce 45 units. In Billings, Montana, 2 laborers, eachmaking $60 per day, can make 100 units. Based on labor costsonly, which location would be most economical to produce theitem?
In Myanmar (formerly Burma), 6 laborers, each mak-ing the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 perday, can produce 45 units. In Billings, Montana, 2 laborers, eachmaking $60 per day, can make 100 units. Based on labor costsonly, which location would be most economical to produce theitem?
In Myanmar (formerly Burma), 6 laborers, eachmaking the equivalent of $3 per day, can produce 40 units perday. In rural China, 10 laborers, each making the equivalentof $2 per day, can produce 45 units. In Billings, Montana,2 laborers, each making $60 per day, can make 100 units.Based on labor costs only, which location would be most economical to produce the item?
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