Concept explainers
(a)
Interpretation: For locating three new machines in a machine shop, the likely violations in the seven listed assumptions, needs to be discussed.
Concept Introduction: Planning and taking strategic decisions on fixing locations involves large amount of investments of financial nature and they are also irreversible.
(b)
Interpretation: For locating an international network of telecommunications facilities, the likely violations in the seven listed assumptions, needs to be discussed.
Concept Introduction: Planning and taking strategic decisions on fixing locations involves large amount of investments of financial nature and they are also irreversible.
(c)
Interpretation: For locating a hospital in a scanty populated area, the likely violations in the seven listed assumptions, needs to be discussed.
Concept Introduction: Planning and taking strategic decisions on fixing locations involves large amount of investments of financial nature and they are also irreversible.
(d)
Interpretation: For locating spare parts depots to support a field repair organization, the likely violations in the seven listed assumptions, needs to be discussed.
Concept Introduction: Planning and taking strategic decisions on fixing locations involves large amount of investments of financial nature and they are also irreversible.
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Production and Operations Analysis, Seventh Edition
- What kind of location measure technique will be appropriate for you to keep track of continuous location information?arrow_forwardWilliam Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations; In what range of production volume would each of the locations be preferred (at the minimum cost)? Variable cost locations Annual Fixed costs per scanner Cleveland, Ohio $390,000 $34 South Bend, Indiana $360,000 $37 Grand Rapids, Michigan $310,000 $40arrow_forwardA steel company is considering the relocation of one of its manufacturing plants. The company’s executives have selected four areas that they believe are suitable locations. However, they want to determine if the average wages are significantly different in any of the locations, since this could have a major impact on the cost of production. A survey of hourly wages of similar workers in each of the four areas is performed with the following results. Do the data indicate a significant difference among the average hourly wages in the three areas? Hourly Wages ($) Area 1 Area 2 Area 3 10 20 15 12 25 16 8 12 22 13 18 13 9 14 15 24 15 15 13 20 19 13 22 15 Step 1 of 2: Find the value of the test statistic to test for a difference in the areas. Round your answer to two decimal places, if necessary. Step 2 of 2: Make the decision to reject or fail to reject the null hypothesis of equal average hourly wages in the three areas and state the conclusion in terms of…arrow_forward
- Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.arrow_forwardAnswer the given question with a proper explanation and step-by-step solution. Medco plans to open a new medical center and is looking for a suitable location. They have narrowed their choice down to three locations, on Oak, Elm, and Ash Streets. They have defined four factors and have assigned weights to these factors as follows: proximity to hospitals (40), customer parking (30), appearance (20), and ease of expansion (10). They then rated the three locations for the four factors, using a scale of one to five. Their ratings are as follows: Location Factor Weight Oak Elm Ash Proximity to hospitals 40 2 5 3 Customer parking 30…arrow_forwardThe manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below: Locations Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 i. Based on costs, over what range of units will location A be preferred?ii. Based on costs, over what range of units will location B be preferred?iii. Based on costs, over what range of units will location C be preferred?arrow_forward
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- 1) Tabrane Pharmaceuticals is planning to open a new manufacturing facility as part of its expansion plans. The firm has narrowed down the search to locate its new manufacturing facility to five sites. The assessment of these sites is to be made on the basis of the five subjective location factors given below. The firm plans to use a five-point scale (excellent = 5, and poor = 1) to quantify and compare subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision. What is the weighted score for each site? Which site should the firm choose? Locations Factor Weight Moratuwa Jaffna Negombo Kalmunai Galle Labor Climate 0.20 5 3 3 4 4 Proximity to Markets 0.20 4 2 1 4 2 Quality of Life 0.15 4 4 4 1 3 Proximity to Suppliers 0.20 1 3 2 1 5 Taxes 0.25 2 5 3 4 3 2) Ceylon Steel produces steel alloy plates. The firm…arrow_forwardAs an operation manager, you are given the task for preparing a location proposal for a new facility. Please discuss the Do’s and Don’ts you should consider in your proposal before recommending the new facility.arrow_forwardLocation Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the st locations occur at the coordinates listed in the following table. As in the previous exercise, there are also data to indicate how many trips are made annually to each store: Coordinates Trips Site (k) Хk Ук пк 2 96 21 5 41 12 20 10 20 44 48 15 60 58 27 100 4 8 122 94 21 138 80 16 1 2 3 4 5 6 7 8 9 10 11 12 150 40 10 170 18 18 182 2 25 190 56 14 a. Find the optimal location for Oliveira's two distribution centers in this expanded version of the problem.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,