Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
Question
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Chapter C, Problem 1CS
Summary Introduction

Case summary:

Company C would like to open its new plants on two new cities. The shipping cost from each plant to the shop is given for existing plant and new plants.

The following information about the plants has been given:

Plants Shop Capacity
City C City M City MP City D
City G 10 20 40 25 300
City F 20 30 50 15 150
City D 26 36 56 1 150
City MA 7 2 22 37 150
City R 5 10 30 35 150
Demand 300 100 150 200

To determine: The places where the firm can open the new plants.

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Question 1. Identify the range of output for which each alternative is superior(has the lowest cost) 2. If the expected output at the selected location is to be 10000 units per year, which location would provide the lowest total cost? Location Fixed Cost Variable cost A $250,000 $11 B $100,000 $30 C $150,000 $20 D $200,000 $35
Question (2): The fixed and variable costs for a three alternative locations to open new manufacturer are shown below. Indicate over what range each of the alternatives A, B, C is the low-cost choice (show your calculations). Costs A Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 21 25 15 Submission status ENG 5:41 PM UK 4/30/2021 W Tarbo Insert Scroll Lock Pause Break Prt Scr F1 F12 F9 F10 Sys Rq REDMI NOTE 8 F7 F8 F6 AI QUAD CAMERA Num Lock & 立
Question 1 low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative is location_
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