Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Question
Chapter 8, Problem 1DQ
Summary Introduction
To explain: How the location of Company FX is a competitive advantage.
Expert Solution & Answer
Explanation of Solution
Ways the location of Company FX is a competitive advantage:
The Company FX has a “hub and spoke” business concept, where the hub Memphis (in Tennessee) is shown in the map.
The hub is selected in the middle of the country. A specific city Memphis is chosen because of the weather and climate, which allows easy takeoffs and landings of aircrafts throughout the year. The hub allows all parcels to be sorted at a central place, so that parcels from different locations arrive at the hub and are sent to different destinations from the hub for overnight delivery. The overall costs of the operations are kept low and the operations are efficient, when such a location decision is taken.
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analysis needs to address the following issues:
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Factor Factor Description
Weight
Present Location Newbury
Hyde Park
1
Average community income
0.35
2
Community growth potential
0.15
3
Availability of public transportation
0.20
4
Labor availability, attitude, and cost
0.30
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Subway with more than 27,000 outlets in the US is planning for a new restaurant in Buffalo New York.
A) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church with a total weighted score of? (Enter your response rounded to two decimal places.)
B) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will be with a total weighted score of ? (Enter your response rounded to two decimal places.)
Chapter 8 Solutions
Operations Management
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
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