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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Chapter 13, Problem 2VC
Summary Introduction
Interpretation: The pros and cons of locating new plants in the same area as competitor should be concluded.
Concept Introduction: Locating a new plant is a strategic decision to be taken once only. Among the possible locations, there may be locations where a competitor or more may also be there. The decision to favor or discard such a location will depend upon many factors.
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What r ole does real estate market analysis play in determining the feasibility of specific locations for businesses?
What advantages and disadvantages does each potential location offer?
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
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3,000
Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places.
Cx: ____________Cy: ______________
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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- W hat role does real estate market analysis play in determining the feasibility of specific locations for businesses?arrow_forwardwhy it is important for a firm to have a location strategy ?arrow_forwardA 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_forward
- Location 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_forwardHow does Dell technology initiate a facilities location or relocation project? What are the pros and cons of domestic vs. international locations?arrow_forwardA 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. Location Total Points 1 2 3 4 -Select- Criteria Raw material availability Infrastructure Transportation costs is the best location and -Select- Labor relations Quality of life Weight 0.09 0.08 0.35 0.11 0.37 Using this information, determine the best and the worst location. Round your answers to two decimal places. 1 P G VG OK OK is the worst location. Location 2 OK G G VG VG 3 G VG OK P P VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt. 4 G OK VG P OKarrow_forward
- Which Factors affecting location decisions?arrow_forwardQ2k 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.< Askarrow_forwardCalculate the weighted score for each location (A, B, C, and D) shown in Table. Which location would you recommend? Factor Score for Each Location Location Factor Factor Weight A B C D 1. Labor climate 2. Quality of life 3. Transportation system 4. Proximity to markets 5. Proximity to materials 6. Taxes 7. Utilities Total 5 30 5 25 5 15 15 100 5 2 3 5 3 2 5 4 3 4 3 2 5 4 3 5 3 4 3 5 2 5 1 5 4 5 4 1arrow_forward
- 1. Using the center-of-gravity method, compute the centralized coordinates among the following locations, which are indicated via black cells with white text in LOCATION.xlsx: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 2. Using the weighted average center-of-gravity, which accounts for quantities to be shipped from locations, compute the centralized coordinates among the following locations: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 *Quantities to be shipped are listed within the existing locations (i.e. Location 7,1 ships 17 units) in LOCATION.xlsxarrow_forwardCalculate the weighted score for each location (A, B, C,and D) shown in Table 13.6. Which location would yourecommend?arrow_forwardPlease do fast ASAP fastarrow_forward
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