2. Cami-Clothes Cleaners is a dry cleaning business that is considering four possible sites forits new operation. The annual fixed and variable costs for each site have been estimated asfollows:Fixed Costs$350,000$170,000$100,000$250,000Variable Costs$5/Unit$25/Unit$40/Unit$20/UnitLocationABCDa. If demand is expected to be 10,000 units per year, which is the best location?

Answered: a. If demand is expected to be 10,000…

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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An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Fixed Cost Variable Cost Location A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 i. ii. 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) Plot the total cost curves in the chart provided above and identify the range over which each location would be best. [7 marks] Use break-even analysis to calculate exactly the break-even quantity that defines each range. [3 marks]
Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For the preferred site for 20,000 units per year, what would be your total costs?
Why would a U.S. manufacturing firm select a foreign site for one of its plants? a. The site is closer to the product market area b. Labor costs are more favorable c. The foreign country's tax environment is more attractive d. All of these factors could influence a firm's decision to manufacture overseas.
Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and demand. Match the correct answer to each question. Warehouse A B C D City E City F City G City H Warehouse Supply. 0.51 0.21 0.52 0.41 4000 Question 1 0.31 Question 2 0.56 0.43 0.35 0.41 0.28 City Demand 4,400 3,000 6,500 4,700 Match the correct answer to the following questions: 1. What is the supply constraint for Warehouse D? 2. What demand constraint for City H? 0.32 0.54 0.33 4000 0.54 0.34 0.52 6300 6000 [Choose ] [Choose ] > >
The Giant Farmer Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Florida; Denver, Colorado; Lincoln, Nebraska; and Jackson, Mississippi. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 8,000 cases per week is needed. The question is where to locate the new plant. Three potential sites are Buffalo, Atlanta, and Memphis. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered. Plant Chicago Houston Capacity (cases per week) New plant Warehouse Plant Chicago Houston Buffalo (alternative 1) Atlanta (alternative 2) Memphis (alternative 3) For each alternative new plant location, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located? If the new plant is located in Buffalo, the optimal cost is $ (Enter your…
Problem 8-10 Factor Initial cost Traffic Maintenance Dock space Neighborhood Location East #1 East #2 West Weight East #1 100 60 20 24 15 0 00 00 N West East #1 East #2 8 8 4 4 2 East #2 110 35 25 24 9 a. Using the above factor ratings, calculate the composite score for each location. West 110 35 Composite Score 25 13 11 b. Determine which location has the highest composite score:
Describe Strategic Importance of Location Decisions?
The As-You-Like-It Hamburger Shop is considering adding a new location. The investment at each of the four potential sites is the same. The price they can charge for hamburgers is set by the competition in the area. Given the information below, which site is expected to be the most profitable? Factor Site A Site B Site C Site D Fixed Cost $10,000 $8,000 $6,000 $11,000 Variable Cost per Unit $ 0.70 $ 0.70 $ 0.85 $ 0.65 Price per Unit $ 1.30 $ 1.20 $ 1.25 $ 1.10 Forecast Volume (Units) 20,000 22,000 18,000 24,000
In the table below, scores are based on 50=best Location Factor Weight A B C Labour climate 10 35 45 20 taxes 30 30 40 40 utilities 20 25 20 45 wages 40 10 25 25 Which location should be selected and why?
P2.3 Write up the position and orientation for the piston shown in Figure 2.63 through the Location Descriptions section. Assume that the center of the wheel is stationary. 10in α 6in Figure 2.63: Piston.

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