Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable Costs/unit 30 20 15 10 vi. Over what range of output is location B the most preferred location? v. Over what range of output is location C the most preferred location?

Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable Costs/unit 30 20 15 10 vi. Over what range of output is location B the most preferred location? v. Over what range of output is location C the most preferred location?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.
Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. locations fixed costs variable costs/units A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 i. Draw the total costs lines for each location on the same axes. (Use output ranges of 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis. ii. Over what range of output is location A the most preferred location? iii. Over what range of output is location B the most preferred location? iv. Over what range of output is location C the most preferred location?
ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. . If total fixed cost = 40000 AVC = 20 Price per unit = 10 Break even point = 40000 / 20 - 10= 4000 So at the 4000 units of production, there will be no profit and loss as the total revenue is equal to the total cost. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.
ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed
Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Costs A B C Fixed Costs ($) 700,000 1,000,000 1,100,000 Variable ($ per unit) 28 20 18 Identify the range over which each alternative (A, B and C) is best. A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. The factor weights and the consultant team scores are given in table 5 below. Scores are based on 50 = best. Locations Factors Weights A B C Labor Climate 10 35 45 20 Taxes 30 30 40 40 Utilities 20 25 20…
ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs.I. Design a numerical example in order to demonstrate to the Productions andOperations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.
Problem 8-9 (Static) Location Score Factor (100 points each) Weight A B Convenience 0.15 80 70 Parking facilities 0.20 72 76 Display area 0.18 88 90 90 Shopper traffic 0.27 94 86 Operating costs 0.10 98 90 Neighborhood 0.10 96 85 182820 C 60 92 80 82 75 1.00 Click here for the Excel Data File a. Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Location Composite Score A B 0
ABC Ltd. Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use the break-even analysis location technique to help determine which location is best based on costs. I. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed above.
Sweet World Limited is considering building a Super-Pop facility in one of the European countries. The locations and quantities shipped to major European countries are shown in the table below. Location England France Spain Germany Italy X 4 4 277 Y 753 6 63 Quantity 2,000 1,100 500 3,000 600 Required 1. Using the centre-of-gravity method, where should the new Super-Pop facility be located? 2.Explain two major disadvantages associated with the method in (i) above.
1. Using the center-of-gravity method, compute the centralized coordinates among the following locations, which are indicated via black cells with white text in LOCATION.xlsx: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 2. Using the weighted average center-of-gravity, which accounts for quantities to be shipped from locations, compute the centralized coordinates among the following locations: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 *Quantities to be shipped are listed within the existing locations (i.e. Location 7,1 ships 17 units) in LOCATION.xlsx
Unisng the information provided in the photo attached, 1. demonstrate how the centre of gravity location technique can be used to determine the best location that will minimize total travel distance. SHOW ALL WORKING
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.< Ask