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Question 2 MGMT2026 Production and Operations Management Semester II 2024-2025 a. Aman ltd. desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows in the Table 2 below: Table 2 Factor Score Evaluation by Location Criterion Weights A B с D Wages 25 4 5 3 4 Government Policies 30 8 7 6 5 Unionisation Weather 15 6 4 3 2 30 3 4 6 5 i. Based on weighted scores, where should Acme locate its new facility? [6 marks] b. An operations manager has narrowed down the search for a new factory to three locations. The fixed and variable costs associated with each location is given in the table below. i. Table 3 Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 с $200,000 $5 Write an equation for the total costs of each location. Plot these total costs lines on a graph. Over which volume of output is each location preferred based on costs? [3 marks] ii. [6 marks] iii. [3 marks] A manufacturing company operates three warehouses located in different regions, supplying products to multiple retail stores. The company is considering setting up a new distribution center to optimize transportation costs. The locations of the three warehouses and their average monthly shipments (in tons) are given below: Warehouse Monthly shipment (tons) X coordinate (KM) Y coordinate (KM) A 10 20 50 B 30 40 70 C 50 30 80

Question 2 MGMT2026 Production and Operations Management Semester II 2024-2025 a. Aman ltd. desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows in the Table 2 below: Table 2 Factor Score Evaluation by Location Criterion Weights A B с D Wages 25 4 5 3 4 Government Policies 30 8 7 6 5 Unionisation Weather 15 6 4 3 2 30 3 4 6 5 i. Based on weighted scores, where should Acme locate its new facility? [6 marks] b. An operations manager has narrowed down the search for a new factory to three locations. The fixed and variable costs associated with each location is given in the table below. i. Table 3 Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 с $200,000 $5 Write an equation for the total costs of each location. Plot these total costs lines on a graph. Over which volume of output is each location preferred based on costs? [3 marks] ii. [6 marks] iii. [3 marks] A manufacturing company operates three warehouses located in different regions, supplying products to multiple retail stores. The company is considering setting up a new distribution center to optimize transportation costs. The locations of the three warehouses and their average monthly shipments (in tons) are given below: Warehouse Monthly shipment (tons) X coordinate (KM) Y coordinate (KM) A 10 20 50 B 30 40 70 C 50 30 80

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 100P
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Question 2 MGMT2026 Production and Operations Management Semester II 2024-2025 a. Aman ltd. desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows in the Table 2 below: Table 2 Factor Score Evaluation by Location Criterion Weights A B с D Wages 25 4 5 3 4 Government Policies 30 8 7 6 5 Unionisation Weather 15 6 4 3 2 30 3 4 6 5 i. Based on weighted scores, where should Acme locate its new facility? [6 marks] b. An operations manager has narrowed down the search for a new factory to three locations. The fixed and variable costs associated with each location is given in the table below. i. Table 3 Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 с $200,000 $5 Write an equation for the total costs of each location. Plot these total costs lines on a graph. Over which volume of output is each location preferred based on costs? [3 marks] ii. [6 marks] iii. [3 marks] A manufacturing company operates three warehouses located in different regions, supplying products to multiple retail stores. The company is considering setting up a new distribution center to optimize transportation costs. The locations of the three warehouses and their average monthly shipments (in tons) are given below: Warehouse Monthly shipment (tons) X coordinate (KM) Y coordinate (KM) A 10 20 50 B 30 40 70 C 50 30 80
Transcribed Image Text:Question 2 MGMT2026 Production and Operations Management Semester II 2024-2025 a. Aman ltd. desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows in the Table 2 below: Table 2 Factor Score Evaluation by Location Criterion Weights A B с D Wages 25 4 5 3 4 Government Policies 30 8 7 6 5 Unionisation Weather 15 6 4 3 2 30 3 4 6 5 i. Based on weighted scores, where should Acme locate its new facility? [6 marks] b. An operations manager has narrowed down the search for a new factory to three locations. The fixed and variable costs associated with each location is given in the table below. i. Table 3 Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 с $200,000 $5 Write an equation for the total costs of each location. Plot these total costs lines on a graph. Over which volume of output is each location preferred based on costs? [3 marks] ii. [6 marks] iii. [3 marks] A manufacturing company operates three warehouses located in different regions, supplying products to multiple retail stores. The company is considering setting up a new distribution center to optimize transportation costs. The locations of the three warehouses and their average monthly shipments (in tons) are given below: Warehouse Monthly shipment (tons) X coordinate (KM) Y coordinate (KM) A 10 20 50 B 30 40 70 C 50 30 80
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