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
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 4AME
Summary Introduction
Interpretation: The load distance score after determination of center of gravity to decide on the location of a facility is to be improved.
Concept Introduction: Center of gravity, the method is one of the methods used to determine the theoretical geographical location with minimum costs. The load center method is another method that minimizes the load distance. Both methods have their own utility and limitations.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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
Use the photo attached to answer the following question,
1.Using the centre of gravity location technique, determine the best location that will minimize total travel distance.
SHOW WORKING
Location Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition with Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the store locations occur at the coordinates listed in the following table. As in the previous exercise, there are also data to indicate how many trips are made annually to each store:Coordinates TripsSite (k) xk yk nk 1 2 96 21 2 5 41 12 3 20 10 20 4 44 48 15 5 60 58 27 6 100 4 8 7 122 94 21 8 138 80 16 9 150 40 1010 170 18 1811 182 2 2512 190 56 14A)Find the optimal location for Oliveira's two distribution centers in this expanded version of the problem.b) What is the optimal value of the objective function?
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
Knowledge Booster
Similar questions
- Provide an example of a location configuration for the manufacture and service of a product?arrow_forwardLocation Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the st locations occur at the coordinates listed in the following table. As in the previous exercise, there are also data to indicate how many trips are made annually to each store: Coordinates Trips Site (k) Хk Ук пк 2 96 21 5 41 12 20 10 20 44 48 15 60 58 27 100 4 8 122 94 21 138 80 16 1 2 3 4 5 6 7 8 9 10 11 12 150 40 10 170 18 18 182 2 25 190 56 14 a. Find the optimal location for Oliveira's two distribution centers in this expanded version of the problem.arrow_forwardAn analysis of sites for a distribution center has led to two possible sites (L1 and L2 on the map). The sites are comparable on every key factor. The one remaining factor is the center of gravity. Use the center of gravity method to select the better site. Monthly shipments will be the quantities listed in the table.arrow_forward
- Explain the consequences of poor location decisions for a business and why it is important to consider in the analysis?arrow_forward~m8h5q2~arrow_forwardThe 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: ______________arrow_forward
- How can the centre-of-gravity method be used to find the best locations for local services such as public libraries, medical centres, or post offices? What constraints should be considered when the method is used in large, congested cities?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_forwardSolve on EXCEL spreadsheetsarrow_forward
- Discuss what is meant by the nature of location decisions?arrow_forwardDescribe the four main approaches used to solve the problem location?arrow_forwardHyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,