Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 8, Problem 16P

a)

Summary Introduction

To determine: The production range at which each location is optimal.

b)

Summary Introduction

To determine: The best site.

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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.         Costs A B C Fixed Costs ($) 700,000 1,000,000 1,100,000 Variable ($ per unit) 28 20 18 Identify the range over which each alternative (A, B and C) is best. A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. The factor weights and the consultant team scores are given in table 5 below. Scores are based on 50 = best.                            Locations Factors Weights A B C Labor Climate 10 35 45 20 Taxes 30 30 40 40 Utilities 20 25 20…
The fixed and variable costs for three potential manu-facturing plant sites for a rattan chair weaver are shown: SITE FIXED COST PER YEAR VARIABLE COST PER UNIT1 $ 500 $112 1,000 73 1,700 4a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best?
The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:                                                                                                                                                           a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best?
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