Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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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.

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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?
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