a)
To decide: The best site for company SW to open its new restaurant
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)
To decide: The best site for company SW to open its new restaurant
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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- Which Factors affecting location decisions?arrow_forwardThe fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site Fixed Cost Per Year Variable Cost per Unit 1 $800 $10.00 $5.00 $4.00 $1,100 3 $2,100 a) Afteř rounding to the nearest whole number, site 1 is best below V units. After rounding to the nearest whole number, site 2 is best between V and V units. After rounding to the nearest whole number, site 3 is best above V units. b) If the demand is 1010 units, then the best location for the potential manufacturing plant isarrow_forwardGIVE EXAMPLE OF GENERAL PROCEDURE FOR MAKING LOCATION DECISIONS?arrow_forward
- When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardEXPLAIN THE NATURE OF LOCATION DECISIONS?arrow_forwardA location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers,testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors. their weights, and the ratings for each location are shown in the following table. High scores represent favorable values a) Compute the composite (weighted average) rating for each location.b) Which site would you choose?c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recompute as necessary and explain.arrow_forward
- What kinds of location decisions are appropriate for the use of locational cost-volume analysis?arrow_forwardded to complete the marketing campaign? impact would this have on the critical path and the Problem 3 Hugh Leach Corp., a producer of machine tools wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produced. McKinney would have annual fixed costs of $920,000 and variable costs of $13,000 per standard unit. The finished items sell for $29,000 each. a) At what volume of output would the two locations have the same profit? b) For what range of output would Bonham be superior (have higher profits)? c) For what range would McKinney be superior? d) What is the relevance of break-even points for these cities? Problem 4 The monthly demand for units manufact Month Mayarrow_forwardProblem 8-11 A manager has received an analysis of several cities being considered for a new office complex. The data (10 points maximum) are as follows: Location Score Factor A B C Business services 8 6 6 Community services 7 6 7 Real estate cost 3 8 7 Construction costs 5 8 7 Cost of living 3 7 8 Taxes 5 5 4 Transportation 6 7 8 a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? A / 7 B / 7 C / 7 Thus, (Click to select) A B C B and C A and B is the best. b. If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack up? A / 9 B / 9 C / 9 Thus, (Click to select) A B C A and B B and C is best and (Click to select) A B C A and B B and C…arrow_forward
- The Skulls, a student social organization, has two different locations underconsideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha Ave $5000 $200 per person Beta Blvd $8000 $150 per person If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?arrow_forwardDaniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. Thefollowing table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is I through 5. a) Which site should Tracy choose?b) If site D 's score for Energy costs increases from a 3 to a 5, do results change?c) If site A's Weather score is adj usted to a 4, what is the impact? What should Tracy do at this point?arrow_forwardPizza Hut, with more than 25,000 outlets in the U.S., is planning a new restaurant in Lubbock, Texas. Three locations are being considered. The following table gives the factors for each site. Using the Factor Rating Method, which site should be selected? FACTOR WEIGHT MALL Down Town LCU Space 0.30 60 50 80 Costs 0.25 40 80 90 Traffic density 0.20 90 70 60 Neighborhood income 0.15 90 70 40 Zoning laws 0.10 70 20 50arrow_forward
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