Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 8, Problem 31P
Summary Introduction
To determine: The center of gravity location for the new proposed facility.
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Williams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one ot two cities – New Orleans and Houston. Table below provides pertinent production and distribution costs as well as plant capacities and distribution demands.
Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm?
From Plants
To Distribution centers
Normal production
Unit production cost
Los Angeles
New York
Existing plants
Atlanta
Tulsa
$8
$4
$5
$7
600
900
$6
$5
Proposed locations
New Orleans
Houston
$5
$4
$6
$6a
500
500
$4 (anticipated)
$3 (anticipated)
Forecast demand
800
1,200
2,000
a – Indicates distribution cost (shipping, handling, storage) will be $6 per…
Describe the four main approaches used to solve the problem location?
You may notice different warehouses close to customers, to maximize customer service levels Mostly FMCG companies have established their warehouses/distribution centers in this area. Name the location strategy theses warehouses are using? Why most of the FMCG companies have chosen this area for their distribution centers and what benefits can these warehouses in this area /location can bring to FMCG companies?
Chapter 8 Solutions
Principles Of 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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