Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Question
Chapter 8, Problem 25P
a)
Summary Introduction
To rank: The three cities as its new site for servicing aircraft.
b)
Summary Introduction
To determine: If the ranking changes.
c)
Summary Introduction
To determine: If there is any change in the rankings
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Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1 per unit, while the shipping cost from Billings to Denver is $.25 per unit. Considering both labor and transportation costs, which is the most favorableproduction location?
How does Dell technology initiate a facilities location or relocation project? What are the pros and cons of domestic vs. international locations?
You are trying to decide which of the following three cities in which to locate a new manufacturing
facility, and you have gathered the following information about each:
City
Annual Fixed Cost
Variable Cost (per unit)
Singapore
$30,000
$2
Hong Kong
$20,000
$3
Niagara Falls
$10,000
$6
If this facility will produce 2,000 units annually, where should you locate it?
O A. Singapore
O B. Niagara Falls
O C. either Singapore or Niagara Falls
O D. Hong Kong
O E. either Hong Kong or Niagara Falls
Chapter 8 Solutions
Operations Management
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