Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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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
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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_
Chapter C Solutions
Operations Management
Ch. C - Question: 1. What are the three information needs...Ch. C - Question: 2. What are the steps in the intuitive...Ch. C - Prob. 3DQCh. C - Prob. 4DQCh. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 1PCh. C - Question: C.2 Consider the transportation table...Ch. C - Prob. 3PCh. C - Prob. 4PCh. C - Prob. 5PCh. C - Prob. 6PCh. C - Question: C.7 The three blood banks in Seminole...Ch. C - Question: C.8 In Solved Problem C 1 (page 728),...Ch. C - Question: C.9 For the following Gregory Bier...Ch. C - Prob. 10PCh. C - Prob. 11PCh. C - Prob. 12PCh. C - Question: C.12 Dana Johnson Corp. is considering...Ch. C - Prob. 1CS
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