Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 13, Problem 12P
A
Summary Introduction
Interpretation: The location of Dennison should be determined using a break-point analysis.
Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.
B
Summary Introduction
Interpretation: The location of Dennison, at foreseeable units of manufacturing, is to be determined.
Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.
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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
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G
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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
OK
Q2k
Audi is considering three locations A, B and C for the production of its new model SUV
XL500. The objective is to choose the location with the lowest costs. The costs are
measured as annual fixed costs plus the variable costs of the product. The following
data has been collected for the three locations.<
Region
Fixed costs per year
A
B
C
10 000 000
20 000 000
25 000 000
Variable cost per unit
1. at what level of production will C be the best choice?
2. at what production rate will A be the best choice?
3. at what level of production will B be the best choice?
2500
2000<
1000<
The company's projected annual production in the new plant is 0-60 000 units.<
Ask
Dennison Manufacturing makes large helical springs used inaircraft landing gear. The company has narrowed its potentialchoices for its new manufacturing facility to four cities. Thefollowing information is known about the manufacturing andshipping costs of locating in each of these four cities:
a. Use break-even point analysis to determine where Den-nison should locate.b. Based solely on break-even quantity, if Dennison’s manu-facturing forecast for the foreseeable future is 40,000 unitsannually, where should he locate?
Chapter 13 Solutions
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
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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