Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 11.11, Problem 45P

(a)

Summary Introduction

Interpretation: The location-allocation problems needs to be described and its difference from the problems previously treated in this chapter needs to be given.

Concept Introduction: In location-allocation problem, a set of locations of facilities are determined, and demand sites are assigned, in such a way that it is to be served by one of these facilities.

(b)

Summary Introduction

Interpretation: The discrete location problems needs to be described and and its difference from the problems previously treated in this chapter needs to be given.

Concept Introduction: A discrete facility location problem is considered, when a balance has to be achieved between the minimum and maximum number of customers, wherein there is a difference that arises between the allocation of these customers made to every plant.

(c)

Summary Introduction

Interpretation: The network location problems needs to be described and and its difference from the problems previously treated in this chapter needs to be given.

Concept Introduction: Network location problem is used in situations where the other method of distance calculation has its own limitations.

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Tropical Bliss wants to use an event to promote its new products. The company will however need to decide regarding the location and venue to use for the launch of its exiting new productline. They have developed a payoff table for three locations: Montego-Bay, Kingston, and Mandeville, and have also identified three states of nature (the crowd response / turn-out) Large,Moderate and Low:   Payoffs are profits $000   Crowd Response (State of Nature) Locations Large Moderate Low Montego Bay 850 440 -85 Kingston 750 480 -20 Mandeville 650 550 110 A. What location should Tropical Bliss choose if the MaxiMax criterion is used? B. What location should Tropical Bliss choose if the LaPlace criterion is used? C. Using the MaxiMin criterion, which location should Tropical Bliss choose? D. If the probability of getting out a large crowd is 43%, the probability of getting out a moderate size crowd is 22%, and the probability of getting out a small crowd is 35%.Using expected…
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