Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
11th Edition
ISBN: 9780135639221
Author: Jay Heizer, Barry Render
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 28P
Summary Introduction
To determine: The site to be selected by the owner.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below.
Identify the range over which each alternative (A, B and C) is best.
William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations;
In what range of production volume would each of the locations be preferred (at the minimum cost)?
Variable cost
locations
Annual Fixed costs
per scanner
Cleveland, Ohio
$390,000
$34
South Bend, Indiana
$360,000
$37
Grand Rapids, Michigan
$310,000
$40
snip
Chapter 8 Solutions
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
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
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
- Pizza Hut, with more than 25,000 outlets in the U.S., is planning a new restaurant in Lubbock, Texas. Three locations are being considered. The following table gives the factors for each site. Using the Factor Rating Method, which site should be selected? FACTOR WEIGHT MALL Down Town LCU Space 0.30 60 50 80 Costs 0.25 40 80 90 Traffic density 0.20 90 70 60 Neighborhood income 0.15 90 70 40 Zoning laws 0.10 70 20 50arrow_forwardWhat would be important criteria for selecting a site for an IKEA store?arrow_forwardThe 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?arrow_forward
- 7arrow_forwardThe Zhao family of Atlanta, Georgia, is planning its annual summer vacation. Three vacation locations along with criteria weights and location ratings follow. What is the recommended vacation location? Criteria Travel distance Vacation Entertainment available Outdoor activities Unique experience Family fun O Myrtle Beach, South Carolina OSmoky Mountains Branson, Missouri Weight 2 5 3 2 4 5 Myrtle Beach, South Carolina 5 5 7 9 5 8 Ratings Smoky Mountains 9 6 4 6 9 9 Branson, Missouri 3 8 4 5 9 8arrow_forwardThe fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site Fixed Cost Per Year Variable Cost per Unit 1 $800 $10.00 $5.00 $4.00 $1,100 3 $2,100 a) Afteř rounding to the nearest whole number, site 1 is best below V units. After rounding to the nearest whole number, site 2 is best between V and V units. After rounding to the nearest whole number, site 3 is best above V units. b) If the demand is 1010 units, then the best location for the potential manufacturing plant isarrow_forward
- A firm that has recently experienced enormous growth is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $40,000 for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected to be $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000 per year, and the Birmingham location by $25,000 per year. Expected annual volume is 10,000 units. 6.arrow_forwardSap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Costs A B C Fixed Costs ($) 700,000 1,000,000 1,100,000 Variable ($ per unit) 28 20 18 Identify the range over which each alternative (A, B and C) is best. A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. The factor weights and the consultant team scores are given in table 5 below. Scores are based on 50 = best. Locations Factors Weights A B C Labor Climate 10 35 45 20 Taxes 30 30 40 40 Utilities 20 25 20…arrow_forwardDaniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. Thefollowing table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is I through 5. a) Which site should Tracy choose?b) If site D 's score for Energy costs increases from a 3 to a 5, do results change?c) If site A's Weather score is adj usted to a 4, what is the impact? What should Tracy do at this point?arrow_forward
- A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented in the table below. Table 1 Costs A B C Fixed 500,000 600,000 800,000 Variable 40 30 20 Indicate over what range, each of the alternatives A, B, C is the low-cost choice. b) A larger and more modern post office is to be constructed at a new location in Sally Spring Georgia. Growing suburbs caused a shift in the population density from where it was 30 years ago when the current facility was built. Andy Browne, the postmaster asked his assistants to draw a grid map of the seven points where mail is picked up and delivered in bulk. The coordinates and trips per day to and from the seven mail source points and the current main post office are shown in the table below. Mail Source Point Round Trips per day X coordinate Y coordinate 1 6 2 8 2…arrow_forwardThe fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown here: a) Graph the total-cost lines for the four potential sites.b) Over what range of annual volume is each location the preferable one (that with lowest expected cost)?c) If expected volume of the ski equipment is 5,000 units, which location would you recommend?arrow_forwardLet us assume that a new medical facility, Health-care, is to be located in ABC city. The location factors, weights, and scores (1 = poor, 5 = excellent) for three potential sites are shown in the following table. What is the weighted score for these sites? Which is the best location Sr. Location factor Weight Scores Location 1 Location 2 Location 3 1 Facility utilization 25 3 5 6 2 Total patient per month 25 4 3 5 3 Average time per emergency trip 20 4 3 5 4 Land and construction costs 15 1 4 2 5 Employee preferences 25 5 3 5arrow_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.