Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Question
Chapter 8, Problem 2.4VC
Summary Introduction
Case summary:
The vice president of HR café is to select the next country for the café. In the front end selecting the city and the country will take a lot of research. The vice president picks the final spot and also keeps in track on the first year sales in the country.
The identification of site locations is taking into the factors of city centers where the trend of nightlife is on a high. The location analysis also means that there is a 10 to 15 years of investment in the new location.
To determine: Under which conditions do HRC prefer to franchise a café.
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Students have asked these similar questions
Problem 1:
A large pharmaceutical chain aims to build a new store to be able to deliver from it to the rest of
the mid-west area. By now, three different locations have been selected. Some data about
factors, weights and location are provided to make the selection.
Locations
Factor
Weight
Peoria
Des Moines Chicago
Closeness to markets
20
4
7
Labor costs
8
4
Taxes
15
9
7
Closeness to providers
10
10
10
help.2
QUESTION 2
1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open
a plant in the coming year. He has four locations in mind. The costs information for
these locations is in the following table.
Locations
Fixed Costs
Variable
Costs/unit
a.
i.
ii.
iii.
A
60,000
30
B
80,000
20
с
100,000
15
D
130,000
10
Write an equation to represent the total costs for each location.
Draw the total costs lines for each location on the same axes. (Use output ranges
of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.
Over what range of output is location A the most preferred location?
Chapter 8 Solutions
Operations Management
Ch. 8 - Prob. 1EDCh. 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. 9DQ
Ch. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 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. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 1CSCh. 8 - Prob. 2CSCh. 8 - Prob. 3CSCh. 8 - Prob. 4CSCh. 8 - Prob. 1.1VCCh. 8 - Prob. 1.2VCCh. 8 - Prob. 1.3VCCh. 8 - Prob. 2.1VCCh. 8 - Prob. 2.2VCCh. 8 - Prob. 2.3VCCh. 8 - Prob. 2.4VC
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Similar questions
- QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A Fixed Costs 60,000 Variable 30 Costs/unit a. iv. V. B 80,000 20 с 100,000 15 D 130,000 10 Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?arrow_forwardPlease assistarrow_forwardProblem 8-9 (Static) Location Score Factor (100 points each) Weight A B Convenience 0.15 80 70 Parking facilities 0.20 72 76 Display area 0.18 88 90 90 Shopper traffic 0.27 94 86 Operating costs 0.10 98 90 Neighborhood 0.10 96 85 182820 C 60 92 80 82 75 1.00 Click here for the Excel Data File a. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Location Composite Score A B 0arrow_forward
- Question 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?arrow_forwardLocation Questionarrow_forward1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable Costs/unit 30 20 15 10 vi. Over what range of output is location B the most preferred location? v. Over what range of output is location C the most preferred location?arrow_forward
- What is location factor rating?arrow_forwardLocation Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.arrow_forwardProblem 8-10 Factor Initial cost Traffic Maintenance Dock space Neighborhood Location East #1 East #2 West Weight East #1 100 60 20 24 15 0 00 00 N West East #1 East #2 8 8 4 4 2 East #2 110 35 25 24 9 a. Using the above factor ratings, calculate the composite score for each location. West 110 35 Composite Score 25 13 11 b. Determine which location has the highest composite score:arrow_forward
- Sweet World Limited is considering building a Super-Pop facility in one of the European countries. The locations and quantities shipped to major European countries are shown in the table below. Location England France Spain Germany Italy X 4 4 277 Y 753 6 63 Quantity 2,000 1,100 500 3,000 600 Required 1. Using the centre-of-gravity method, where should the new Super-Pop facility be located? 2.Explain two major disadvantages associated with the method in (i) above.arrow_forwardName several ways that technology has had an impact on location decisions.arrow_forward••8.23 Todd's Direct, a major TV sales chain headquar- tered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new out- let in the center of Mobile's population base. Todd examines the seven census tracts in Mobile, plots the coordinates of the center of each from a map, and looks up the population base in each to use as a weighting. The information gathered appears in the following table. POPULATION IN CENSUS TRACT X, Y MAP COORDINATES CENSUS TRACT 101 2,000 (25, 45) 102 5,000 (25, 25) 103 10,000 (55, 45) 104 7,000 (50, 20) 105 10,000 (80, 50) 106 20,000 (70, 20) 107 14,000 (90, 25) a) At what center-of-gravity coordinates should the new store be located? b) Census tracts 103 and 105 are each projected to grow by 20% in the next year. How will this influence the new store's coordinates? Parrow_forward
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