Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 8P
Summary Introduction
To rate: The importance of given factors pertaining to location decisions for four types of organizations.
Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.
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Solve on EXCEL spreadsheets
A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the
importance of the criteria.
Location Total Points
1
2
3
4
-Select-
Criteria
Raw material availability
Infrastructure
Transportation costs
is the best location and -Select-
Labor relations
Quality of life
Weight
0.09
0.08
0.35
0.11
0.37
Using this information, determine the best and the worst location. Round your answers to two decimal places.
1
P
G
VG
OK
OK
is the worst location.
Location
2
OK
G
G
VG
VG
3
G
VG
OK
P
P
VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt.
4
G
OK
VG
P
OK
The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the coordinates are as follows:
Location
Market
Coordinates
Number of
Segment
x
y
Customers
1
5
22
2,200
2
17
20
300
3
5
3
1,400
4
10
3
3,000
Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places.
Cx: ____________Cy: ______________
Chapter 8 Solutions
Operations Management
Ch. 8.6 - Prob. 1RQCh. 8.6 - Prob. 2RQCh. 8 - Prob. 1DRQCh. 8 - Prob. 2DRQCh. 8 - Prob. 3DRQCh. 8 - Prob. 4DRQCh. 8 - Prob. 5DRQCh. 8 - Prob. 6DRQCh. 8 - Prob. 7DRQCh. 8 - Prob. 8DRQ
Ch. 8 - Prob. 9DRQCh. 8 - Prob. 1TSCh. 8 - Prob. 2TSCh. 8 - Prob. 3TSCh. 8 - Prob. 1CTECh. 8 - Prob. 2CTECh. 8 - Prob. 3CTECh. 8 - Prob. 4CTECh. 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. 1CQ
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Similar questions
- Q2k Audi is considering three locations A, B and C for the production of its new model SUV XL500. The objective is to choose the location with the lowest costs. The costs are measured as annual fixed costs plus the variable costs of the product. The following data has been collected for the three locations.< Region Fixed costs per year A B C 10 000 000 20 000 000 25 000 000 Variable cost per unit 1. at what level of production will C be the best choice? 2. at what production rate will A be the best choice? 3. at what level of production will B be the best choice? 2500 2000< 1000< The company's projected annual production in the new plant is 0-60 000 units.< Askarrow_forwardA supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. 2 3 4 -Select- is the best location and -Select- -Select- Location 1 Location 2 Location 3 Location 4 Criteria Raw material availability Infrastructure Transportation costs Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 is the worst location. Labor relations Quality of life Weight 0.11 0.13 0.23 0.23 0.30 1 VG G P G G W Location 2 OK OK OK P VG 3 OK VG OK VG G VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt. 4 OK OK G VG OKarrow_forwardEagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atla nta (A),Baltimore (B), Chicago (C), or Dallas (D). The factors, scores,and weights follow: a) Using the factor-rating method, what is the recommended site for Eagle Electronics's new facility?b) For what range of values for the weight (currently w7 = I 0) does the site given as the answer to part (a) remain a recommended site?arrow_forward
- When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardYou are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 15,000 units annually, where should you locate it? O A. Niagara Falls O B. Singapore C. either Hong Kong or Niagara Falls O D. Hong Kong O E. either Singapore or Niagara Fallsarrow_forwardYou are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 2,000 units annually, where should you locate it? O A. Singapore O B. Niagara Falls O C. either Singapore or Niagara Falls O D. Hong Kong O E. either Hong Kong or Niagara Fallsarrow_forward
- An analysis of sites for a distribution center has led to two possible sites (L1 and L2 on the map). The sites are comparable on every key factor. The one remaining factor is the center of gravity. Use the center of gravity method to select the better site. Monthly shipments will be the quantities listed in the table.arrow_forwardExplain the consequences of poor location decisions for a business and why it is important to consider in the analysis?arrow_forwardHow does factor weighting incorporate personal preference in location choices?arrow_forward
- Choose a major sector of the hospitality or tourism industry wherein you would want to own or manage a facility in the future. Determine a concept and list criteria that you believe are important in your site selection and create a Likert Scale for the facility.arrow_forwardWhat advantages and disadvantages does each potential location offer?arrow_forwardDescribe the three steps to locational cost volume analysis in location strategies ?arrow_forward
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