Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 7.S, Problem 7P
Summary Introduction
To recommend: The best new clinic location using the factor rating method.
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Sap 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.
A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers,testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors. their weights, and the ratings for each location are shown in the following table. High scores represent favorable values a) Compute the composite (weighted average) rating for each location.b) Which site would you choose?c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recompute as necessary and explain.
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…
Chapter 7 Solutions
Operations and Supply Chain Management 9th edition
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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- 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. Thefollowing 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 I through 5. a) Which site should Tracy choose?b) If site D 's score for Energy costs increases from a 3 to a 5, do results change?c) If site A's Weather score is adj usted to a 4, what is the impact? What should Tracy do at this point?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_forwardLet us assume that a new medical facility, Health-care, is to be located in ABC city. The location factors, weights, and scores (1 = poor, 5 = excellent) for three potential sites are shown in the following table. What is the weighted score for these sites? Which is the best location Sr. Location factor Weight Scores Location 1 Location 2 Location 3 1 Facility utilization 25 3 5 6 2 Total patient per month 25 4 3 5 3 Average time per emergency trip 20 4 3 5 4 Land and construction costs 15 1 4 2 5 Employee preferences 25 5 3 5arrow_forward
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- When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardbasis K- Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-processing center. The firm has selected the six factors listed below as a for evaluation and has assigned rating weights from 1 to 5 on each factor. Subhajit Chakraborty, the CEO, has rated each location for each factor on a 1 to 100 point basis. In the table below, the rating weights and the rating value for each of the locations on the factor are presented: Factor 1 2 3 4 5 6 Factor Description Proximity to port facilities Power-source availability and cost Workforce attitude and cost Distance from Houston Rating Weight 5 3 3 3 1 2 Location A Location B 70 70 85 75 50 65 75 60 55 10 100 50 Location C 80 100 75 60 85 90 Community desirability Equipment suppliers in area a) Based on the given information, the best location for Pan American Refineries is , with a total weighted score of. (Enter your response as an integer) b) If Location B's score for Proximity to…arrow_forwardSilky Industries is looking for a location for its second telephone remanufacturing facility. Two cities are under consideration. The two most important location factors are: Factor A “availability of resources” and Factor B “availability of customers.” However, the company is having great difficulty assigning relative weights to these factors. Location Factor Factor Weight Factor Scorefor Each City Blake Irmo A. Availability of resources 5 6 B. Availability of customers 10 7 Total 100 Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location?arrow_forward
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