Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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Chapter 13, Problem 3VC
Summary Introduction
Interpretation: The approach to the proposal of establishing a plant at a location just because low cost labor is available is to be explained.
Concept Introduction: The overall business requirement of locating a new plant at a certain location is not to minimize the labor cost but to maximize profits and business. Therefore it is never enough for a location to have low labor cost as a deciding factor.
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Discuss why locating a plant solely on the basis of low labor costs may be the wrong approach ?
Explain why locating a plant solely on the basis of low labor costs may be the wrong approach.
What is plant location? Discuss the steps to be taken in choosing a plant location
Chapter 13 Solutions
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab 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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- sniparrow_forwardThere are certain constraints to be considered while selecting the location of a plant. List them and briefly explain?arrow_forwardWhat are the advantages and disadvantages of using the weighted factor method, centre of gravity method and location break even analysis in operations management when looking at locationsarrow_forward
- When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardExplain why plant location decisions are important to the organization?arrow_forwardThe Quick Copy center for document copying is decidingwhere to locate a new facility. Th e annual fi xed and variable costsfor each site it is considering have been estimated as follows: If demand is expected to be 3000 units, which location is best?arrow_forward
- Explain each of the following terminologies in the context of SCM with an example: Customer augmentation, Location determination,arrow_forwardAn operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 Plot the total cost curves in a line chart and identify the range over which each location would be best.arrow_forwardA firm that recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi MS; or Birmingham, AL. Prepare an economic analysis of the three locations giving the following information. Annual costs for building, equipment, and administration would be $64,000 for Memphis, $74,000 for Biloxi, and $109,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $6 per unit in Biloxi, and $6 per unit in Birmingham. The Memphis location would increase system transportation costs by $63,000 per year, the Biloxi location by $73,500 per year, and the Birmingham location by $25,900 per year. Expected annual volume is 14,900 units. Total Cost Memphis _______________ Biloxi _______________ Birmingham _________________arrow_forward
- Shoeless Joe is a specialty retailer that is deciding where tolocate a new facility. Th e annual fi xed and variable costs for eachpossible site have been estimated as follows: If demand is expected to be 2000 units, which location is best?arrow_forwardWhat would be the important location factors that McDonald’s might consider before opening a new restaurant?arrow_forwardProvide a perspective on why location decisions may impact production system design decisions.arrow_forward
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