MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 13, Problem 11P
Summary Introduction
Interpretation:Both the locations are to be evaluated and the location that should be selected for operating the specialty bagel sandwich kiosk is to be determined.
Concept Introduction:A profitability statement should be used to identify the profitability of both the locations. Location that generates the highest profitability should be chosen.
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The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the coordinates are as follows:
Location
Market
Coordinates
Number of
Segment
x
y
Customers
1
5
22
2,200
2
17
20
300
3
5
3
1,400
4
10
3
3,000
Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places.
Cx: ____________Cy: ______________
Describe two factors that will affect the location decision of a supermarket and explain why these factors are important to the decision.
Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend?
Location
Downtown
Suburban
Annual rent, including utilities
Expected annual demand (sandwiches)
Average variable costs per sandwich
Average selling price per sandwich
$12,000
30,000
$1.50
$3.25
$8,000
25,000
$1.00
$2.85
Chapter 13 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7P
Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 1AMECh. 13 - Prob. 2AMECh. 13 - Prob. 3AMECh. 13 - Prob. 4AMECh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VC
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- A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. 2 3 4 -Select- is the best location and -Select- -Select- Location 1 Location 2 Location 3 Location 4 Criteria Raw material availability Infrastructure Transportation costs Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 is the worst location. Labor relations Quality of life Weight 0.11 0.13 0.23 0.23 0.30 1 VG G P G G W Location 2 OK OK OK P VG 3 OK VG OK VG G VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt. 4 OK OK G VG OKarrow_forwardSam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities $10,500 $7,250 Expected annual demand (sandwiches) 37,500 23,500 Average variable costs per sandwich $1.25 $1.20 Average selling price per sandwich $3.15 $2.80 Expected annual profits from the Downtown location are $ (Enter your response as an integer.) Expected annual profits from the Suburban location are $. (Enter your response as an integer.) Therefore, the V location should be recommended.arrow_forwardLocation decisions represent a key part of the strategic planning process of virtually every organization. Highlight any four (4) reasons/circumstances that may call for new location decisions in organizations. Outline any three (3) aspects that differentiate a manufacturing location from a service location decisions.arrow_forward
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