Chapter 6, Problem 15QP

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DryIce, Inc. is a manufacturer of air conditioners that has seen its demand grow significantly. The company anticipates nationwide demand for the year 2010 to be 180,000 units in the South; 120,000 units in the Midwest; 110,000 units in the East; and 100,000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York, Atlanta, Chicago, and San Diego. Plants could have a capacity of either 200,000 or 400,000 units. The annual fixed costs at the four locations are shown in the table below, along with the cost of producing and shipping an air conditioner to each of the four markets. Where should DryIce build its factories and how large should they be?   New York Atlanta Chicago San Diego       Annual fixed cost of 200,00 plant $6 miilion 5.5 million 5.6 million 6.1 million       Annual fixed cost of 400,000 $10 million $9.2 million 9.3 million 10.2 million       EAST $211 $232 $238 $299       SOUTH $232 $212…

Given: Shop‐n‐Go is seeking the optimal site for their new premium strip mall in Suburbanville, CA. There are four locations under consideration (Sites 1 through 4). The company’s operations manager and his facility location team have identified seven primary location factors that should be considered when choosing the optimal location. Each factor was assigned a weight from 1 – lowest to 10 – highest. Each site under consideration was rated from 1 – poor to 10 – great based on each factor. Use the factor‐ rating method and the criteria specified below to rank each site from best to worst based on the factors identified.  a) Rank the sites from best to worst based on all seven factors.   b) Rank the sites from best to worst if the operating costs are not factored into the evaluation.