Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Question
Chapter 8, Problem 8P
a)
Summary Introduction
To determine: The decision that should be taken.
b)
Summary Introduction
To determine: The change in the solution.
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Marilyn Helm Retailers is attempting to decide on alocation for a new retail outlet. At the moment, the firm has threealternatives—stay where it is but enlarge the facility; locate alongthe main street in nearby Newbury; or locate in a new shoppingmall in Hyde Park. The company has selected the four factorslisted in the following table as the basis for evaluation and hasassigned weights as shown:FACTOR FACTOR DESCRIPTION WEIGHT1 Average community income .302 Community growth potential .153 Availability of public transportation .204 Labor availability, attitude, and cost .35Helm has rated each location for each factor, on a 100-pointbasis. These ratings are given below:LOCATION
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Chapter 8 Solutions
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
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. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 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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- Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives: stay where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as shown: Factor Description Hyde Park Factor Weight Present Newbury Location 1 Average community 0.30 40 60 50 income Community growth potential 2 0.15 20 20 80 Availability of public transportation 0.20 30 60 50 Labor availability, attitude, and cost 4 0.35 80 50 50 a) Based on the given information, the best location for Marilyn Helm Retailers is to open the new retail outlet in with a total weighted score of 3.arrow_forwardSam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities Expected annual demand (sandwiches) Average variable costs per sandwich Average selling price per sandwich $12,000 30,000 $1.50 $3.25 $8,000 25,000 $1.00 $2.85arrow_forwardA clothing chain is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Barclay and Chester. Factor Description Average community income Community growth potential Availability of public transportation Factor Weight .40 Barclay Chester 30 20 .25 40 30 .15 20 20 Labor cost What is the score for Barclay? 4 .20 10 30 24.50 10.00 100.00 27.00 25.75arrow_forward
- 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 12,000arrow_forwardSam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities $10,500 $7,250 Expected annual demand (sandwiches) 37,500 23,500 Average variable costs per sandwich $1.25 $1.20 Average selling price per sandwich $3.15 $2.80 Expected annual profits from the Downtown location are $ (Enter your response as an integer.) Expected annual profits from the Suburban location are $. (Enter your response as an integer.) Therefore, the V location should be recommended.arrow_forwardA supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. 2 3 4 -Select- is the best location and -Select- -Select- Location 1 Location 2 Location 3 Location 4 Criteria Raw material availability Infrastructure Transportation costs Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 is the worst location. Labor relations Quality of life Weight 0.11 0.13 0.23 0.23 0.30 1 VG G P G G W Location 2 OK OK OK P VG 3 OK VG OK VG G VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt. 4 OK OK G VG OKarrow_forward
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