OPERATIONS MANAGEMENT CUSTOM 12E >C<
18th Edition
ISBN: 9781323889503
Author: HEIZER
Publisher: PEARSON C
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Chapter 8, Problem 8P
a)
Summary Introduction
To determine: The decision to be taken by company MRH.
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)
Summary Introduction
To determine: The decision to be taken by company MRH.
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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 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…
A 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.
Using the following factor ratings, determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.
Chapter 8 Solutions
OPERATIONS MANAGEMENT CUSTOM 12E >C<
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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