PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
Question
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Chapter 8, Problem 5P

a)

Summary Introduction

To decide: The best site for company SW to open its new restaurant

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To decide: The best site for company SW to open its new restaurant

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

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Which is the highest rated of the four European cities under consideration, using the table? Why does Hard Rock put such serious effort into its location analysis? Under what conditions do you think Hard Rock prefers to franchise a cafe?
Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automo-bile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the followingdata: SITE ANNUALIZEDFIXED COST VARIABLE COST PERAUTO PRODUCEDA $10,000,000 $2,500B $20,000,000 $2,000C $25,000,000 $1,000The firm knows it will produce between 0 and 60,000 Sport C150sat the new plant each year, but, thus far, that is the extent of itsknowledge about production plans.a) For what values of volume, V, of production, if any, is site C arecommended site?b) What volume indicates site A is optimal?c) Over what range of volume is site B optimal? Why?
DESCRIBE THE NEED FOR LOCATION DECISIONS ?
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