Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 8P
Summary Introduction
To rate: The importance of given factors pertaining to location decisions for four types of organizations.
Introduction: Location is where a firm chooses to site its operations. Location decisions can large effects on expenses and incomes. Location choices are normally quite imperative to both substantial and private companies. The area choice directly affects an operation's expenses and also its capacity to serve clients.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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
What are the advantages and disadvantages of a qualitative (as opposed to a quantitative) approach to location decision making?
The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment, along with the coordinates are as follows:
Location
Market
Coordinates
Number of
Segment
x
y
Customers
1
5
22
2,200
2
17
20
300
3
5
3
1,400
4
10
3
3,000
Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places.
Cx: ____________Cy: ______________
Chapter 8 Solutions
Operations Management
Ch. 8.6 - Prob. 1RQCh. 8.6 - Prob. 2RQCh. 8 - Prob. 1DRQCh. 8 - Prob. 2DRQCh. 8 - Prob. 3DRQCh. 8 - Prob. 4DRQCh. 8 - Prob. 5DRQCh. 8 - Prob. 6DRQCh. 8 - Prob. 7DRQCh. 8 - Prob. 8DRQ
Ch. 8 - Prob. 9DRQCh. 8 - Prob. 1TSCh. 8 - Prob. 2TSCh. 8 - Prob. 3TSCh. 8 - Prob. 1CTECh. 8 - Prob. 2CTECh. 8 - Prob. 3CTECh. 8 - Prob. 4CTECh. 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. 1CQ
Knowledge Booster
Similar questions
- A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. Location Total Points 1 2 3 4 -Select- Criteria Raw material availability Infrastructure Transportation costs is the best location and -Select- Labor relations Quality of life Weight 0.09 0.08 0.35 0.11 0.37 Using this information, determine the best and the worst location. Round your answers to two decimal places. 1 P G VG OK OK is the worst location. Location 2 OK G G VG VG 3 G VG OK P P VG = Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts ; P = Poor 1 pt. 4 G OK VG P OKarrow_forwardQ2k 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.< Askarrow_forwardWhat are the differences between service and industrial-sector location analysis?arrow_forward
- A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. 2 3 4 -Select- is the best location and -Select- -Select- Location 1 Location 2 Location 3 Location 4 Criteria Raw material availability Infrastructure Transportation costs Using this information, determine the best and the worst location. Round your answers to two decimal places. Location Total Points 1 is the worst location. Labor relations Quality of life Weight 0.11 0.13 0.23 0.23 0.30 1 VG G P G G W Location 2 OK OK OK P VG 3 OK VG OK VG G VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt. 4 OK OK G VG OKarrow_forwardEagle 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_forwardUsing the following factor ratings, determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.arrow_forward
- You are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 2,000 units annually, where should you locate it? O A. Singapore O B. Niagara Falls O C. either Singapore or Niagara Falls O D. Hong Kong O E. either Hong Kong or Niagara Fallsarrow_forwardWhen an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardYou are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 15,000 units annually, where should you locate it? O A. Niagara Falls O B. Singapore C. either Hong Kong or Niagara Falls O D. Hong Kong O E. either Singapore or Niagara Fallsarrow_forward
- A company is constructing a new hostel facility. The company has hired you as part of the team to identify the best potential sites for the new facility. Your team identified four sites and have rated the important location factors for each site as follows: LOCATION FACTOR SCORES (out of 100) WEIGHT A B C D Proximity to Campus 0.23 70 90 65 85 Student traffic 0.22 75 80 60 85 Parking availability 0.16 90 60 80 70 Plot size, terrain 0.12 80 70 90 75 Infrastructure 0.10 50 60 40 60 Off-campus accessibility 0.06 90 70 70 70 Proximity to dining facilities 0.05 60 80 70 90 Visitor traffic 0.04 70 80 65 55 Landscape/aesthetics 0.02 50 40 60 70 Required: c) If the location C has its score for infrastructure to be 80. Will the choice in (b) be the same? d) Explain two (2) benefits for the best location selected for the hostel in…arrow_forwardA company is constructing a new hostel facility. The company has hired you as part of the team to identify the best potential sites for the new facility. Your team identified four sites and have rated the important location factors for each site as follows: LOCATION FACTOR SCORES (out of 100) WEIGHT A B C D Proximity to Campus 0.23 70 90 65 85 Student traffic 0.22 75 80 60 85 Parking availability 0.16 90 60 80 70 Plot size, terrain 0.12 80 70 90 75 Infrastructure 0.10 50 60 40 60 Off-campus accessibility 0.06 90 70 70 70 Proximity to dining facilities 0.05 60 80 70 90 Visitor traffic 0.04 70 80 65 55 Landscape/aesthetics 0.02 50 40 60 70 Required: a) What is the weighted score for the each location? b) Which location will you recommend for the new hostel? Justify your choice.arrow_forwardA company is constructing a new hostel facility. The company has hired you as part of the team to identify the best potential sites for the new facility. Your team identified four sites and have rated the important location factors for each site as follows: LOCATION FACTOR SCORES (out of 100) WEIGHT A B C D Proximity to Campus 0.23 70 90 65 85 Student traffic 0.22 75 80 60 85 Parking availability 0.16 90 60 80 70 Plot size, terrain 0.12 80 70 90 75 Infrastructure 0.10 50 60 40 60 Off-campus accessibility 0.06 90 70 70 70Proximity to dining facilities 0.05 60 80 70 90 Visitor traffic 0.04 70 80 65 55 Landscape/aesthetics 0.02 50 40 60 70 Required: a) What is the weighted score for the each location? b) Which location will you recommend for the new hostel? Justify your choice. c) If the location C has its score for infrastructure to be 80. Will the choice in (b) be the same? d) Explain two (2) benefits for the best location selected for the hostel in (b).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.