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MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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Sarah has a startup business that makes two distinct bird feeders that she has designed. Sarah is planning on operating a small factory to build the bird feeders. She is looking at two possible locations, A and B. If she chooses location A, the lease on the building will be higher than location B, thus leading to higher fixed costs than what she would have with location B. However, if she makes more than 20,000 units, both locations will likely have to be expanded, both the physical buildings and the manufacturing equipment. Variable costs to produce each unit will vary by location as well as by product. For example, the first design will have variable costs of $10 and $15 in locations A and B respectively, while the second bird feeder design will have variable costs of $20 and $25 respectively depending on location. However, she thinks that variable costs will decrease if she sells more than 5,000 units, as she will receive discounts from her suppliers at that point. She is unsure of…
Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location
for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far
obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor
scoring is 1 through 5.
Factor Factor Description
Quality of labor
1
2356
2 Construction cost
3 Transportation costs
Proximity to Markets
4
5
6
7
Taxes
Weather
Energy costs
Weight
10
A
5
3
2777656
353
6
3
5
1
3
a) Based on the given information, the best site for Daniel Tracy is
(Enter your response as an integer.)
B
15037
3
4
3
3
Site Scores
с
5
3
4
5
2
4
2
with a total weighted score of
4
D
523
4
4
4
b) If site D's score for Energy costs increases from a 2 to a 5, D's weighted score will be (Enter your response as a whole number)
Then the best site for Daniel Tracy will be with a weighted score of
c) If site B's Weather score is adiusted to a 5. B's weighted…
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- Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5. Factor 1 2 3 4 5 6 Factor Description Quality of labor Construction cost Transportation costs Proximity to Markets Taxes 7 Weight 10 7 78565 A 5 3 4 5 2 2 4 B 3 2 5 3 2 5 4 (Enter your response as an integer.) Site Scores Weather Energy costs a) Based on the given information, the best site for Daniel Tracy is C with a total weighted score of 197. (Enter your response as an integer.) b) If site D's score for Energy costs increases from a 3 to a 5, its a total weighted score will be 144. (Enter your response as an integer.) Then, the best site for Daniel Tracy will be C with a total weighted score of 197. (Enter your response as an…arrow_forwardAPC industries has been experiencing significant growth and has been having difficulty meeting customer demands recently. They are considering three options to address this issue. They can move to a larger facility, add a second shift or use a subcontractor to assist in production. The annual payoff of each option depends on if the current market continues to expand hold s steady or declines. The expected payoff for each combination is shown in the table below Option Expand Steady Decline Move to larger facility 250,000 125,000 -90,000 Add a second shift 175,000 80,000 -45,000 Subcontract 90,000 15,000 -10,000 Which option should APC choose with the Hurwicz criterion with α = 0.5? Using a minimax regret approach, what alternative should she choose? After reading about economic predictions, APC has assigned the probability that the market will be expanded, or be steady or be weak at 20%, 50%, and 30 %. Using expected monetary values, what option should be chosen, and what…arrow_forwardDaniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5. Factor Factor Description Quality of labor 2 3 4 5 6 Construction cost Transportation costs Proximity to Markets Taxes 7 Weight 10 7 7 8 5 6 5 Weather Energy costs a) Based on the given information, the best site for Daniel Tracy is C b) If site D's score for Energy costs increases from a 3 to a 5, its a total weighted score will be A 5 3 4 5 2 2 4 B 3 2 5 3 2 5 4 Site Scores C 5 4 3 4 with a total weighted score of 197 (Enter your response as an integer.) (Enter your response as an integer.) D 3 1 2 3 4 3arrow_forward
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