Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 8P
a)
Summary Introduction
To determine: The decision to be taken by company MRH.
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 determine: The decision to be taken by company MRH.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A dry-cleaning firm has decided to operate stores in five neighborhoods in which a market analysis has determined the demand level. Its strategy is to investigate the
best site to expand into a centralized plant to process the cleaning and pressing. It has completed a qualitative assessment and wants to supplement its analysis by
rating a series of conditions for each site. Given the following preference matrix, identify the preferred site for the plant.
Cleaner's Site
Scores
Factor Name
Weight
A
B
D
E
1
Proximity to complementary businesses
Power availability & cost
Public transportation
Mixed-use zoning
25
10
8
8
9
7
2
25
8
7
8
8
3
15
3
6
7
8
9
4
15
1
8
6
7
5
Road quality
10
9
6
8
9
8
6
Demand level
10
8
7
7
8
O A. B
В. D
С. С
D. E
O O O O
Accel Express, Inc., collected the following information on where to locate a warehouse (1 = poor, 10 = excellent):
Location Score
Location Factor
Factor Weight
A
B
Construction costs
10
8
5
Utilities available
10
7
7
Business services
10
4
7
Real estate cost
20
7
4
Quality of life
20
4
8
Transportation
30
7
6
a. Which location, A or B, should be chosen on the basis of the total weighted score?b. If the factors were weighted equally, would the choice change?
Marilyn Helm Retailers is attempting to decide on alocation for a new retail outlet. At the moment, the firm has threealternatives—stay where it is but enlarge the facility; locate alongthe main street in nearby Newbury; or locate in a new shoppingmall in Hyde Park. The company has selected the four factorslisted in the following table as the basis for evaluation and hasassigned weights as shown:FACTOR FACTOR DESCRIPTION WEIGHT1 Average community income .302 Community growth potential .153 Availability of public transportation .204 Labor availability, attitude, and cost .35Helm has rated each location for each factor, on a 100-pointbasis. These ratings are given below:LOCATION
FACTOR PRESENT LOCATION NEWBURY HYDE PARK1 40 60 502 20 20 803 30 60 504 80 50 50a) What should Helm do?b) A new subway station is scheduled to open across the street fromthe present location in about a month, so its third factor scoreshould be raised to 40. How does this change your answer?
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
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
- sniparrow_forwardHyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, 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 following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $10,000,000 $2,600 B $20,000,000 $1,900 C $30,000,000 $1,100 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) The value of volume, V, of production above which site C is recommended = nothing Sport C150s (round your response up to the next whole number). b) The value of volume, V, of production below which site A is…arrow_forwardExplain the primary determinants of location and how they effect location decisions.arrow_forward
- Eagle 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_forwardHyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, 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 following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.arrow_forwardTolkien Transport is currently based in Leeds but has plans to expand its operations by setting up another depot in the south of England. The management team has identified four possible locations for the depot and these are listed in the decision matrix below. As a first step they have decided to use a multi-criteria analysis (MCA) to rank the options. After much discussion, the team have decided on three key criteria (Cost, Accessibility and Environmental Impact) against which to judge the options and have agreed on the ratings shown in the matrix, below (running from 4 for the best to 1 for worst under each criterion). The criteria have been weighted as follows: Cost (0.45), Accessibility (0.35) and Environmental Impact (0.2). Option Cost Accessibility Environmental Impact Bristol 4 2 1 Reading 3 3 2 Swindon 1 4 3 Chelmsford 2 1 4 Required: Given the information above, which location would you advise Tolkien Transport to…arrow_forward
- Alternative locations for a new drinking water treatment plant are being evaluated using four attributes identified as A, B, C, and D with weightsof 0.4, 0.3, 0.2, and 0.1, respectively. If the value rating scale is from 1 to 10, the evaluation measure of the weighted attribute method for ratings of 3,7, 2 and 10 for attributes A, B, C, and D, respectively, is closest to:a. 3.3b. 3.9c. 4.1d. 4.7arrow_forwardWilliam 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 $40arrow_forwardHyundai 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?arrow_forward
- 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.arrow_forwardTATA Motors is considering three sites - A, B, and C - at which to locate a factory to build its new-model automobile, the TATA SUV XL500. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable cost of production. TATA Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $11,000,000 $2,000 B $20,000,000 $1,400 C $27,000,000 $550 The firm knows it will produce between 0 and 60,000 SUV XL500s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. Find the range of the production volume for which a)site A is optimal. b)site B is optimal. c)site C is optimal.arrow_forwardA clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Georgetown and Biabou. Calculate the weighted score for each alternative location. Which location should be chosen?arrow_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.