Operations Management (Comp. Instructor's Edition)
13th Edition
ISBN: 9781259948237
Author: Stevenson
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 1CTE
Summary Introduction
To determine: Whether the organizations have social responsibilities to factor into its decision the impact that its move would have on the city.
Introduction:
A facility location implies a place to construct a facility. The facility location decisions are vital for long term planning. Without comprehensive area arrangement in the first place, the new facilities might posture constant working interruptions for the future processes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A company is considering the relocation of its manufacturing plant and administrative offices from a small city in one part of the country to a similar-sizef city in another part of the country. Approximately 20% of the residents of the city are employed by the company and many others are employed in businesses such as banks, personal services, restaurants, shopping centers, and supermarkets that would suffer a decline in business if the company decides to relocate. Does the company have a social responsibility to factor into its decision the impact that it's move would have on the city? Explain your reasoning.
The owner of a Major League Baseball team is considering moving his team from its current city in the upper Midwest to a city in the Southeast that offers a larger television market, a new stadium, and holds the potential for greater fan support. What other factors should the owner consider before actually making the decision to relocate?
If you were in charge of choosing IKEA’s next U.S. store location, what factors would you consider in making your decision?
Chapter 8 Solutions
Operations Management (Comp. Instructor's Edition)
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Your company is planning to move to a new location, and have asked your 200 employees, what factors are the most important to them in the new location. For each of the factors given below the number next to the factor is the number of employees that put the factors first, or second in importance. After this evaluation, you asked each person to rank the location first for the given factor. Location Factors A B Personal Safety (150) 80 70 50 Proximity to the Day Care (100) 50 80 70 Access to public transportation (100) 100 40 60 Parking (150) 90 60 50 The above ratings were then used to develop a score from 0 to 1 for each location with 1 being the best. On this scale determine the best location.arrow_forwardA city mayor you know is interested in recruiting Amazon to build in their city but doesn't know what a company considers before choosing where to build a processing plant. She has hired you to help her and her city council understands what decision factors Amazon might consider before making its choice. Research how companies decide where to locate a facility, and then write a brief report identifying and explaining at least 8 decision factors Amazon might consider before choosing a city to locate their new headquarters.arrow_forwardCarlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carlisle’s marketing department estimates the probabilities of these market outcomes to be 0.25, 0.35, and 0.40, respectively. The file P09_31.xlsx contains Carlisle’s payoffs and costs for the various combinations of decisions and outcomes. a. Use PrecisionTree to identify the strategy that maximizes this tire manufacturer’s expected profit. b. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution? Tire plant decisions Decision\outcome…arrow_forward
- Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carlisle’s marketing department estimates the probabilities of these market outcomes to be 0.25, 0.35, and 0.40, respectively. The file P06_31.xlsx (picture of given excel file is attached) contains Carlisle’s payoffs and costs for the various combinations of decisions and outcomes. Identify the strategy that maximizes this tire manufacturer’s expected profit. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution?arrow_forwardMcDonald's is about to open a new store. Three locations are under consideration, with possible outcomes (depending on demand) as shown in the table to the right. small medium large Low 45 20 -20 Demand Moderate 60 65 50 Answer the following 4 (four) questions. Using the Laplace criterion, which location is best? Using the minimax regret criterion, which location is best? Using the maximin criterion, which location is best? Using the maximax criterion, which location is best? High 75 100 150 A. large B. small C. small or medium (both are equivalent) D. medium large (both are equivalent) E. medium 분arrow_forwardW hat role does real estate market analysis play in determining the feasibility of specific locations for businesses?arrow_forward
- A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. 1. Which alternative would yeild the higher profit for an annual demand of 3000 units? 2. Would the two locations yeild the same profit at a certain volume? If so, at what volume would that be?arrow_forwardCalculate the weighted score for each location (A, B, C, and D) shown in Table. Which location would you recommend? Factor Score for Each Location Location Factor Factor Weight A B C D 1. Labor climate 2. Quality of life 3. Transportation system 4. Proximity to markets 5. Proximity to materials 6. Taxes 7. Utilities Total 5 30 5 25 5 15 15 100 5 2 3 5 3 2 5 4 3 4 3 2 5 4 3 5 3 4 3 5 2 5 1 5 4 5 4 1arrow_forwardA company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives. A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $315,000 per year, and variable costs would be $600 per boat. Subcontracting would involve a cost per boat of $2,580, and expansion would require an annual fixed cost of $58,000 and a variable cost of $1,040 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B C or to OA OB OC to more b. Which alternative would yield the lowest total cost for an expected annual volume of 90 boats? c. What other factors might be considered in choosing between expansion…arrow_forward
- Earthquake, drought, fire, economic famine, flood, and a pestilence of TV court reporters have caused an exodus from the City of Angels to Boulder, Colorado. The sudden increase in demand is straining the capacity of Boulder's electrical system. Boulder's alternatives have been reduced to buying 100,000 MWh of electric power from Tri-County G&T at a price of $64 per MWh, or refurbishing and recommissioning the abandoned Pearl Street Power Station in downtown Boulder. Fixed costs of that project are $11 million per year, and variable costs would be $40 per MWh. Should Boulder build or buy? With a total cost of $____ per year. (Enter your response as an integer.)arrow_forwardEarthquake, drought, fire, economic famine, flood, and a pestilence of TV court reporters have caused an exodus from the City of Angels to Boulder, Colorado. The sudden increase in demand is straining the capacity of Boulder’s electrical system. Boulder’s alternatives have been reduced to buying 150,000 MWh of electric power from Tri-County G&T at a price of $75 per MWh, or refurbishing and recommissioning the abandoned Pearl Street Power Station in downtown Boulder. Fixed costs of that project are $10 million per year, and variable costs would be $35 per MWh. Should Boulderbuild or buy?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. Assuming that the factor weights must sum to 100, what range of weights would make Blake the superior location? E Click the icon to view the factors table. The total weighted factor scores are the same for the following weights: Factor A=O and Factor B =D. As the weight of Factor B becomes Blake will be the superior location. (Enter your responses as whole numbers.) More Info Factor Score for Each Location Factor City Factor Weight Blake Irmo A. Availability of resources B. Availability of customers Total 8 10 9 6. 100 Print Donarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.