OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 18, Problem 6DQ
Summary Introduction
To describe: A recent high visibility, warehouse location decision and enumerate the relevant factors that were considered in deciding on the location.
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What 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 locations
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
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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
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
OK
Contrast the location of a food distributor and a supermarket. (The distributor sends truckloads of food, meat, produce, etc., to the supermarket.) Show the relevant considerations (factors) they share; show those where they differ.
Chapter 18 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
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- Describe two factors that will affect the location decision of a supermarket and explain why these factors are important to the decision.arrow_forwardA firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location. Use algebra to determine the crossover points.arrow_forwardDevelop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and demand. Match the correct answer to each question. Warehouse A B C D City E City F City G City H Warehouse Supply. 0.51 0.21 0.52 0.41 4000 Question 1 0.31 Question 2 0.56 0.43 0.35 0.41 0.28 City Demand 4,400 3,000 6,500 4,700 Match the correct answer to the following questions: 1. What is the supply constraint for Warehouse D? 2. What demand constraint for City H? 0.32 0.54 0.33 4000 0.54 0.34 0.52 6300 6000 [Choose ] [Choose ] > >arrow_forward
- sniparrow_forwardFind examples of good and bad location decisionsarrow_forwardGiven the retail location coordinates and the value of material movement in the following chart, find the best supply point location using the center-of-gravity method. Retail Outlet Location Coordinates X, Y Material Movement 1 25, 05 1,500 2 17, 20 3,000 3 12, 12 1,000 4 06, 09 2,200arrow_forward
- A larger and more modern main post office is to be constructed at a new location in Davis, California. Growing suburbs caused a shift in the population density from where it was 40 years ago, when the current facility was built. Annette Werk, the postmaster, asked her assistants to draw a grid map of the seven points where mail is picked up and delivered in bulk. The coordinates and trips per day following table. M will continue to act as a mail source point after relocation. and from the seven mail source points and the current main post office, M, are shown in the Round trips per day x, y, Coordinates (miles) (4, 6) (8, 4) (3, 14) Mail Source Point 4 2 7 3 (6, 10) (12, 11) (13, 5) (13, 6) (14, 10) 11 7 6 3 7 3 8 a. Calculate the center of gravity as a possible location for the new facility. (Enter your responses rounded to the nearest whole number.) The center of gravity "X" coordinate = 9 The center of gravity "Y" coordinate = 8. b. Compare the load-distance scores for the location…arrow_forwardUsing the information about customer vehicle traffic to and from a proposed new sports stadium (not built yet), find the best location for the stadium that minimizes total distance travelled using the center-of-gravity method. Zip Code Location Options 2 3 4 Coordinates of Location X 2 9 12 13 y 4 5 6 12 Vehicles per Stadium Event 4,300 4,700 1,100 2,000 Use the center-of-gravity method to determine an ideal location for a service center. Round your answers to two decimal places. Cx: Cy:arrow_forwardSuppose that you are an engineer tasked with finding a new location for your distribution center (let's say you work as an industrial engineer at a cosmetics company). You have a good idea of who your customers are and how many tons of cosmetics you must ship per week. Using your company headquarters as the origin, you plot out the following table: Customer x-location (miles) y-location (miles) Quantity (tons/week) JC Penney 10 280 3 BB&B 70 180 7 Target 80 160 4 Bath&Body Works 170 20 5 Walmart…arrow_forward
- Identify three important factors that a location planner may consider with respect to each of the following: A super-specialty intensive care unit An automobile manufacturing unitarrow_forwardPopulate the relevant data Is any alternative never preferred? Complete a numeric locational cost-volume Indicate over what range each of the alternatives A, B, C is the low-cost choice Costs A B C Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 20+6 23+6 15+6arrow_forwardYou may notice different warehouses close to customers, to maximize customer service levels Mostly FMCG companies have established their warehouses/distribution centers in this area. Name the location strategy theses warehouses are using? Why most of the FMCG companies have chosen this area for their distribution centers and what benefits can these warehouses in this area /location can bring to FMCG companies?arrow_forward
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