The core criteria taken into account when locating various types of organizations. Concept Introduction: An organization hoping to start operations normally take into account several criteria that would enable them to obtain a competitive edge. Many important aspects with regard to business operations would be decided upon these criteria. The location of a business is a much important decision that has to be made with a lot of prudence. When deciding the location of the organization, various firms will give priority to various factors.

Question

William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations; In what range of production volume would each of the locations be preferred (at the minimum cost)? Variable cost locations Annual Fixed costs per scanner Cleveland, Ohio $390,000 $34 South Bend, Indiana $360,000 $37 Grand Rapids, Michigan $310,000 $40

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Question

Chapter 6, Problem 3DQ

Summary Introduction

Interpretation:The core criteria taken into account when locating various types of organizations.

Concept Introduction:

An organization hoping to start operations normally take into account several criteria that would enable them to obtain a competitive edge. Many important aspects with regard to business operations would be decided upon these criteria. The location of a business is a much important decision that has to be made with a lot of prudence. When deciding the location of the organization, various firms will give priority to various factors.

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William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations; In what range of production volume would each of the locations be preferred (at the minimum cost)? Variable cost locations Annual Fixed costs per scanner Cleveland, Ohio $390,000 $34 South Bend, Indiana $360,000 $37 Grand Rapids, Michigan $310,000 $40

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