Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (10th Edition)
10th Edition
ISBN: 9780134467283
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: PEARSON
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Question
Chapter 8, Problem 2.3VC
Summary Introduction
Introduction:
Company HR Vice President for café development, Person OM, has the job to select the ideal country, region and city for expansion of company HR and establish its new site. Though the job seems easy as it is said, it involves lot of front and back end work. Person OM has to do lot of research to choose the country and the city and has to negotitate with the local dealers to fix a reasonable cost for setting up the new plant and he stays with the plant for sales up to one year.
Person OM is currently engaged in global expansion in country E, LA and A and has to look at the polititical risk, currency and social norms and proper fitting of the brand in the particular region. His research consists of extensive checklist such as demographics, market, trend analysis, transportation, restaurants, night clubs, political risks, real estate market and HR comparable market analysis.
The site location has been focused on city centeres like city M and B and to find local franchise partner in both location. The company has made decision for 10-15 year of commitment in its operation in the selected location and it employs tools like location cost-volume analysis. It helps to make decision whether to purchase or reconstruct an existing facility. The data obtained are given below.
| Factor | European city under construction | Importance of this factor at this time | |||
| A | B | C | D | ||
| A. Demographcis | 70 | 70 | 60 | 90 | 20 |
| B. Visitor market | 80 | 60 | 90 | 75 | 20 |
| C. Transportation | 100 | 50 | 75 | 90 | 20 |
| D. Restaurants/night clubs | 80 | 90 | 65 | 65 | 10 |
| E. Low political risk | 90 | 60 | 50 | 70 | 10 |
| F. Real estate market | 65 | 75 | 85 | 70 | 10 |
| G. Comparable market analysis | 70 | 60 | 65 | 80 | 10 |
To determine: The reason for exerting serious effort into its location analysis by company HR.
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Students have asked these similar questions
Explain why shouldn't low wage rates alone be sufficient to select a location ?
Accel Express, Inc., collected the following information on where to locate a warehouse (1 = poor, 10 = excellent):
Location Score
Location Factor
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A
B
Construction costs
10
8
5
Utilities available
10
7
7
Business services
10
4
7
Real estate cost
20
7
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Quality of life
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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?
Accel Express, Inc., collected the following information onwhere to locate a warehouse (1 = poor, 10 = excellent):
a. Which location, A or B, should be chosen on the basis ofthe total weighted score?
b. If the factors were weighted equally, would the choicechange?
Chapter 8 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (10th Edition)
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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