Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Question
Chapter 8, Problem 29P
a)
Summary Introduction
To determine: The range at which each city is preferable.
b)
Summary Introduction
To determine: The best site for recycling 5,000 units.
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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?
Chapter 8 Solutions
Principles Of Operations Management
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
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- Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atla nta (A),Baltimore (B), Chicago (C), or Dallas (D). The factors, scores,and weights follow: a) Using the factor-rating method, what is the recommended site for Eagle Electronics's new facility?b) For what range of values for the weight (currently w7 = I 0) does the site given as the answer to part (a) remain a recommended site?arrow_forwardAccel Express, Inc., collected the following information on where to locate a warehouse (1 = poor, 10 = excellent): Location Score Location Factor Factor Weight A B Construction costs 10 8 5 Utilities available 10 7 7 Business services 10 4 7 Real estate cost 20 7 4 Quality of life 20 4 8 Transportation 30 7 6 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?arrow_forwardGive three examples of unethical behavior involving location selection, and indicate which ethical principle is violated?arrow_forward
- 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…arrow_forwardIn which of the following site selection techniques, a weightage between ‘0’ to ‘1’ is provided to factors that influence its location decision?(a) Location rating factor technique(b) Transportation technique(c) Centre-of-gravity technique(d) None of thesearrow_forwardWhich element of site selection is most likely to be more important to a service-oriented business than to a goods-oriented business? Group of answer choices a) Real estate cost b) Distance to suppliers c) Distance to customers d) Government incentivesarrow_forward
- 13. Bowties-R-Us plans to open a new factory and is looking for a suitable location. They have narrowed their choice down to three locations, Zhengzhou, China; Tijuanna, Mexico; and Nashvile, TN. They have defined four factors and have assigned weights (in parentheses) to these factors as follows: wage rates (60), construction costs (20), logistics (10), and climate (10). They then rated the three locations for the four factors, using a scale of one to five (1=worst, 5=best). Their ratings are as follows: Location ( Zhengzhou) (Tijuanna) (Nashville) Factor: Wage rates ( 5 ) ( 4 ) ( 1 ) Construction costs (. 5 ) ( 5 ) ( 3 ) Logistics ( 1 ) ( 3 ) ( 5 ) Climate ( 3 ) ( 2 ) ( 4. ) I.) Using the factor rating method, calculate the scores and totals for each location a. Zhengzhou = 5, Tijuana = 4, Nashville = 1 b. Zhengzhou = 14, Tijuana = 14, Nashville = 13 c. Zhengzhou = 60, Tijuana = 20, Nashville = 10 d. Zhengzhou = 440, Tijuana = 390, Nashville = 210 e. Cannot…arrow_forwarda. 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?arrow_forwardHyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automo-bile, 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 followingdata: SITE ANNUALIZEDFIXED COST VARIABLE COST PERAUTO PRODUCEDA $10,000,000 $2,500B $20,000,000 $2,000C $25,000,000 $1,000The firm knows it will produce between 0 and 60,000 Sport C150sat the new plant each year, but, thus far, that is the extent of itsknowledge about production plans.a) For what values of volume, V, of production, if any, is site C arecommended site?b) What volume indicates site A is optimal?c) Over what range of volume is site B optimal? Why?arrow_forward
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