Book Title
10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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Question
Chapter 13, Problem 2IS
Summary Introduction
Case summary: Individual H paid in advance to the individual G for building a shed. G only completed half of the work and H paid individual I $500 for completion of the remaining work.
To find: The amount of compensation.
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Question 2
MGMT2026 Production and Operations Management Semester II 2024-2025
a. Aman ltd. desires to locate a new facility. Based on preliminary analysis, the choice has been
reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1
(worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its
importance (i.e., the higher the weight, the more important). The list of ratings and weights
follows in the Table 2 below:
Table 2
Factor Score Evaluation by Location
Criterion
Weights
A
B
с
D
Wages
25
4
5
3
4
Government Policies
30
8
7
6
5
Unionisation
Weather
15
6
4
3
2
30
3
4
6
5
i.
Based on weighted scores, where should Acme locate its new facility?
[6 marks]
b. An operations manager has narrowed down the search for a new factory to three locations. The
fixed and variable costs associated with each location is given in the table below.
i.
Table 3
Location
Fixed Cost
Variable Cost
A
$100,000
$10
B
$150,000
$7
с
$200,000
$5…
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