EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 8, Problem 26P
Summary Introduction

To determine: The preferable site.

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The Skulls, a student social organization, has two different locations underconsideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:   Location Annual Fixed Variable Alpha Ave $5000 $200 per person Beta Blvd $8000 $150 per person If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?
A dental care facility location analysis has been narrowed down to two locations in Alexandria; Stanley and Camp-Cesar. The main factors in the decision will be the supply of dental clinic raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Stanley 60, 80, and 70, respectively; for Camp-Cesar 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the facility OM should: A. be indifferent between these locationsB. choose StanleyC. choose Camp-CesarD. reject both locationsE. build a dental care facility in both districts.Why? – Comment to justify your (the OM) decision.
A chain restaurant wants to open a new location. It is considering three (3) potential sites for the new restaurant. One location is downtown, the other location is in the suburbs and the final location is at the city limits. The downtown location will have monthly fixed costs of $9,500 and labor and materials at $3.75 an order. The suburb location will have a monthly fixed cost of $8,200 and labor and materials at $3.00 an order. The city limits locations will have a monthly fixed cost of $5,500 and labor and materials at $3.85 an order. The average price per order is $15.50 A. The restaurant chain's business analyst is using three different demand levels for each location 1,000 units, 800 units and 500 units. Determine the profitable of each potential location using each of the demand levels. B. At what demand level is each potential location most profitable? C. At what demand level is each potential location least profitable?
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