Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 13P
Summary Introduction
To determine: The coordinates of the location that will minimize distribution costs.
Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.
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A clothing manufacturer produces women’s clothes at four locations in Mexico. Relative locations have been determined, as shown in the table below. The location of a central shipping point for bolts of cloth must now be determined. Weekly quantities to be shipped to each location are also shown in the table. Determine the coordinates of the location that will minimize distribution costs.
Federated Electronics, Ltd., manufactures display screensand monitors for computers and televisions, which it sellsto companies around the world. It wants to construct a newwarehouse and distribution center in Asia to serve emergingmarkets there. It has identified potential sites in the portcities of Shanghai, Singapore, Pusan, Kaohsiung, and HongKong. The following table shows the factors in the locationdecision and the grade of each location for each factor.The weights indicating the importance of each locationfactor are not included. Determine what you think theseweights should be and recommend the best location for thenew distribution center.
An analysis of sites for a distribution center has led to two possible sites (L1 and L2 on the map). The sites are comparable on every key factor. The one remaining factor is the center of gravity. Use the center of gravity method to select the better site. Monthly shipments will be the quantities listed in the table.
Chapter 8 Solutions
Operations Management
Ch. 8.6 - Prob. 1RQCh. 8.6 - Prob. 2RQCh. 8 - Prob. 1DRQCh. 8 - Prob. 2DRQCh. 8 - Prob. 3DRQCh. 8 - Prob. 4DRQCh. 8 - Prob. 5DRQCh. 8 - Prob. 6DRQCh. 8 - Prob. 7DRQCh. 8 - Prob. 8DRQ
Ch. 8 - Prob. 9DRQCh. 8 - Prob. 1TSCh. 8 - Prob. 2TSCh. 8 - Prob. 3TSCh. 8 - Prob. 1CTECh. 8 - Prob. 2CTECh. 8 - Prob. 3CTECh. 8 - Prob. 4CTECh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 1CQ
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- Location Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition with Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the store locations occur at the coordinates listed in the following table. As in the previous exercise, there are also data to indicate how many trips are made annually to each store:Coordinates TripsSite (k) xk yk nk 1 2 96 21 2 5 41 12 3 20 10 20 4 44 48 15 5 60 58 27 6 100 4 8 7 122 94 21 8 138 80 16 9 150 40 1010 170 18 1811 182 2 2512 190 56 14A)Find the optimal location for Oliveira's two distribution centers in this expanded version of the problem.b) What is the optimal value of the objective function?arrow_forwardWhy are most location decisions analyzed by a team of managers instead of a single person? What types of teams are suggested as being helpful to the task of logistics network redesign?arrow_forwardLocation Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of twelve stores spread around the country, often in direct competition Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the st locations occur at the coordinates listed in the following table. As in the previous exercise, there are also data to indicate how many trips are made annually to each store: Coordinates Trips Site (k) Хk Ук пк 2 96 21 5 41 12 20 10 20 44 48 15 60 58 27 100 4 8 122 94 21 138 80 16 1 2 3 4 5 6 7 8 9 10 11 12 150 40 10 170 18 18 182 2 25 190 56 14 a. Find the optimal location for Oliveira's two distribution centers in this expanded version of the problem.arrow_forward
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- how to setup an example of a numerical centre of gravity location technique (for production and operations management) that can be used to demonstrate how the technique is used for a distribution centre?arrow_forwardWiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!arrow_forwardPlease help me to answer about Strategic importance of location decisions.arrow_forward
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