Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below alongwith their cost structure. His marketing director feels that its premier model, The Tyreek,could become thedominant model in the market. If volume is extremely high, which location will have the lowest cost?Cost DataStillwaterKansas City MiamiFixed costs$500,000Direct material cost per unit$10.00Direct labor cost per unit$3.00$1.10$1.10Overhead per unitTransportation cost per unitOa. Stillwaterb. Kansas CityO c. Douglasd. MiamiDouglas$650,000 $600,000 $800,000$11.00$8.00$3.00$4.00$1.00$1.50$0.80$1.25$7.00$5.00$1.20$0.90

Let me state the given data, Cost dataStill waterKansas CityMiamiDouglasFixed…

Answered: Tyreek is comparing the cost to produce…

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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LOCATION STRATEGIES 1. The supply supervisor of Atlantic Mountain Bike the best location for the company' distribution center in Europe. There are 6 branches to be served by the distribution center. Details summarized below Data Summary Volume shipped Distance from Origin North Location East Vienna 2,060 38 98 Rome 3,160 47 70 Athens 1,760 83 21 Sofia 1,490 133 107 Budapest 2,520 105 89 Oslo 1,230 76 125 Compute for the Center of Gravity Method
Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup itsdistribution centre.Setup a numerical example that can be used to demonstrate to the owner of thecompany how the center of gravity technique can be used.
Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!
A food manufacturer wants to locate a warehouse to serve its major customers. The customers, annual volume and the X and Y coordinates are shown in the table below. Customer Annual Volume X Coordinate Y Coordinate Judy Inc 25 3 7 Zac Supermarket 13 5 2 Harry Inc 6 8 4 Sky Productions 4 1 5 Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of products.
What are the advantages and disadvantages of using the weighted factor method, centre of gravity method and location break even analysis in operations management when looking at locations
Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. locations fixed costs variable costs/units A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 i. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis. ii. Over what range of output is location A the most preferred location? iii. Over what range of output is location B the most preferred location? iv. Over what range of output is location C the most preferred location?
Why are most location decisions analyzed by a team of managers instead of a single person? What types of teams are suggested as being helpful to the task of logistics network redesign?
Brian Trump has obtained fixed- and variable-cost information for four potential sites for his professional wrestling school and summarized it in tabular form below. All values are in dollars. Site Fixed Cost Variable Cost A 10,000 24 B 12,000 20 C 14,000 18 D 16,000 17 Brian plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 700 students will matriculate each year, which site will result in the lowest total cost?
Rauschenberg Manufacturing is investigating which locations would best position its new plant relative to three important customers (located in cities A, B, and C). As shown in the table below, all three customers require multiple daily deliveries. Management limited the search for this plant to those three locations and compiled the following information: Location Coordinates (miles) Deliveries per day A (300,100) 4 В (400,200) 8 (200,400) 6 a. Which of these three locations yields the smallest load-distance score, based on Euclidean distances? Location V yields the smallest load-distance score of. (Enter your response rounded to one decimal place.) b. Which of these locations is best, based on rectilinear distances? Location V is the best, yielding a load-distance score of (Enter your response as a whole number.) c. What are the coordinates of the center of gravity? The center of gravity is x = miles, y miles. (Enter your responses rounded to one decimal place.)
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Identify the factors when choosing a business location from the statements below.

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