(1) A company is considering to locate a new plant in possibly in three sites. The relevant factors, their weights, and the scores obtained by the three sites are given in the table below. The scores are given out of 100: Location factor Weight Site 1 scores Site 2 scores Site 3 scores Proximity to customers 0.30 80 65 90 Proximity to suppliers 0.20 100 90 75 Labor pool and climate 0.15 60 95 70 Labor productivity 0.15 75 80 80 Community environment 0.10 65 90 95 Shipping modes 0.05 85 92 65 Air service 0.05 50 65 90 Determine which site should the company select? (2) A company is considering building a plant in one of the three communities. They have estimated the following costs for each location: Community Fixed Cost Variable Cost A $150,000 $62 B $300,000 $38 C $500,000 $24 For what unit sales volume should they choose each location? (3) A plant would prefer to locate close to its four distribution centers of its products. The locations of the distribution centers and the load that is transported to them on a monthly basis is given in the table below. Determine the location of the plant using the center-of-gravity method. D1 D2 D3 ᎠᏎ X = 300 X = 200 X = 550 X = 600 Y = 500 Y = 200 Y = 400 Y = 600 W = 400 W = 900 W = 200 W = 100
(1) A company is considering to locate a new plant in possibly in three sites. The relevant factors, their weights, and the scores obtained by the three sites are given in the table below. The scores are given out of 100: Location factor Weight Site 1 scores Site 2 scores Site 3 scores Proximity to customers 0.30 80 65 90 Proximity to suppliers 0.20 100 90 75 Labor pool and climate 0.15 60 95 70 Labor productivity 0.15 75 80 80 Community environment 0.10 65 90 95 Shipping modes 0.05 85 92 65 Air service 0.05 50 65 90 Determine which site should the company select? (2) A company is considering building a plant in one of the three communities. They have estimated the following costs for each location: Community Fixed Cost Variable Cost A $150,000 $62 B $300,000 $38 C $500,000 $24 For what unit sales volume should they choose each location? (3) A plant would prefer to locate close to its four distribution centers of its products. The locations of the distribution centers and the load that is transported to them on a monthly basis is given in the table below. Determine the location of the plant using the center-of-gravity method. D1 D2 D3 ᎠᏎ X = 300 X = 200 X = 550 X = 600 Y = 500 Y = 200 Y = 400 Y = 600 W = 400 W = 900 W = 200 W = 100
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:(1) A company is considering to locate a new plant in possibly in three sites. The relevant
factors, their weights, and the scores obtained by the three sites are given in the table below. The
scores are given out of 100:
Location factor
Weight
Site 1 scores
Site 2 scores Site 3 scores
Proximity to customers
0.30
80
65
90
Proximity to suppliers
0.20
100
90
75
Labor pool and climate
0.15
60
95
70
Labor productivity
0.15
75
80
80
Community environment
0.10
65
90
95
Shipping modes
0.05
85
92
65
Air service
0.05
50
65
90
Determine which site should the company select?
(2) A company is considering building a plant in one of the three communities. They have
estimated the following costs for each location:
Community
A
B
C
Fixed Cost
Variable Cost
$150,000
$62
$300,000
$38
$500,000
$24
For what unit sales volume should they choose each location?
(3) A plant would prefer to locate close to its four distribution centers of its products. The
locations of the distribution centers and the load that is transported to them on a monthly basis is
given in the table below. Determine the location of the plant using the center-of-gravity method.
D1
D2
D3
X = 300
X = 200
X = 550
ᎠᏎ
X = 600
Y = 500
Y = 200
Y = 400
Y = 600
W = 400
W = 900
W = 200
W = 100
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