Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 8, Problem 3.3Q
Summary Introduction

Case Summary: C Foodstuff is a chain of stores that offers foods and beverages but it is very less spacious. Food stores must be farther from similar stores to reduce the diversion of traffic to other stores. C is considering to open a new store and has identified three promising locations and want to choose the best location based on some factors.

Interpretation: The location you would recommend, in case, the rent is twice important as another factor.

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Which Factors affecting location decisions?
State examples of good and bad location decisions?
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
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