Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 7.S, Problem 4P
Summary Introduction
To recommend: The best plant location using the factor rating method.
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Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atla nta (A),Baltimore (B), Chicago (C), or Dallas (D). The factors, scores,and weights follow: a) Using the factor-rating method, what is the recommended site for Eagle Electronics's new facility?b) For what range of values for the weight (currently w7 = I 0) does the site given as the answer to part (a) remain a recommended site?
1) Tabrane Pharmaceuticals is planning to open a new manufacturing facility as part of its expansion plans. The firm has narrowed down the search to locate its new manufacturing facility to five sites. The assessment of these sites is to be made on the basis of the five subjective location factors given below. The firm plans to use a five-point scale (excellent = 5, and poor = 1) to quantify and compare subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.
What is the weighted score for each site? Which site should the firm choose?
Locations
Factor
Weight
Moratuwa
Jaffna
Negombo
Kalmunai
Galle
Labor Climate
0.20
5
3
3
4
4
Proximity to Markets
0.20
4
2
1
4
2
Quality of Life
0.15
4
4
4
1
3
Proximity to Suppliers
0.20
1
3
2
1
5
Taxes
0.25
2
5
3
4
3
2) Ceylon Steel produces steel alloy plates. The firm…
A location analysis has been narrowed down to two locations, A and B. The main factors in the decision will be supply of raw materials, which has a weight of .50, transportation cost, which has a weight of 0.4, and labour cost, which has a weight of .10. The ratings for raw materials, transportation, and labour are for A-60, 80, and 70, respectively; for B-70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
options:
choose location B
none of the choices
reject both locations
choose location A
be indifferent between these locations
Chapter 7 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 7.S - Prob. 1QCh. 7.S - Prob. 2QCh. 7.S - Prob. 3QCh. 7.S - Prob. 4QCh. 7.S - Prob. 5QCh. 7.S - Prob. 7QCh. 7.S - Prob. 1PCh. 7.S - Prob. 2PCh. 7.S - Prob. 3PCh. 7.S - Prob. 4P
Ch. 7.S - Prob. 5PCh. 7.S - Prob. 6PCh. 7.S - Prob. 7PCh. 7.S - Prob. 8PCh. 7.S - Prob. 12PCh. 7.S - Prob. 13PCh. 7.S - Prob. 14PCh. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Prob. 17PCh. 7.S - Prob. 18PCh. 7.S - Prob. 19PCh. 7.S - Prob. 20PCh. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - Prob. 26PCh. 7.S - Prob. 27PCh. 7.S - Prob. 1.1CPCh. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10QCh. 7 - Prob. 11QCh. 7 - What are the fixed and variable cost tradeoffs...Ch. 7 - What is the difference between block diagramming...Ch. 7 - Prob. 14QCh. 7 - What are the objectives of line balancing?...Ch. 7 - How are manufacturing cells formed? How does the...Ch. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Rent-With-Us Management Inc. has purchased a large...Ch. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - The TLB Yogurt Company must be able to make 600...Ch. 7 - The Speedy Pizza Palace is revamping its...Ch. 7 - Professor Garcia has assigned 15 cases in his OM...Ch. 7 - McCauleys Heating and Air in Phoenix, Arizona,...Ch. 7 - The precedence diagram and task times (in minutes)...Ch. 7 - The Costplus Corporation has set a processing...Ch. 7 - Hanover Hospital beds can transform from a bed to...Ch. 7 - Fines Furniture is known for its fine cedar...Ch. 7 - Prob. 25PCh. 7 - The Wet Wellies Corporation produces waterproof...Ch. 7 - Prob. 27PCh. 7 - Jetaway, a small manufacturer of replacement parts...Ch. 7 - Workout Plus Workout Plus is a health club that...Ch. 7 - Photo Op-Please Line Up Tech is modernizing its...Ch. 7 - Photo Op-Please Line Up Tech is modernizing its...Ch. 7 - Photo Op-Please Line Up Tech is modernizing its...
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- Hyundai 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 $10,000,000 $2,600 B $20,000,000 $1,900 C $30,000,000 $1,100 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. a) The value of volume, V, of production above which site C is recommended = nothing Sport C150s (round your response up to the next whole number). b) The value of volume, V, of production below which site A is…arrow_forwardExplain the implications of making poor location choices for a business.arrow_forwardSap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.arrow_forward
- A company desires to locate a new facility. Based on preliminary analysis, thechoice has been reduced to four locations: A, B, C, and D. These four locationswere rated on a scale from 1 worst to 10 best on each of four criteria. Eachcriterion was also weighted to indicate its importance (i.e., the higher theweight, the more important). The list of ratings and weights follows. LocationFactor Weight A B C DWages 0.40 7 5 3 5Laborclimate 0.35 6 5 9 5Localregulation 0.15 3 4 3 2Weather 0.10 2 8 6 9a- What would be the best locationb- If the wights of weather and regulation be divided that the weatherwould be double of the regulations, what would be the best locationarrow_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_forwardA manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented in the table below. Table 1 Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 Indicate over what range, each of the alternatives A, B, C is the low-cost choice.arrow_forward
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- Find examples of good and bad location decisionsarrow_forwardDiscuss the major location factors and how they influence location decisions?arrow_forwardWilliam 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 $40arrow_forward
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