6. Company X wanted to make a pre-assessment before choosing the final location for their newproduction facility by first surveying internally and then making some field analysis. For the twoalternatives that they have following table contains all the important criteria, their weights andthe scores of each candidate location. Please finish the calculation and indicate which one is thepreferred option.Factors/CriteriaProximity to raw materialTraffic volumeRental costsSizeLayoutOperating costsWeight0,20,050,40,050,150,15Alt. 11008070864080Alt. 2608090927090

Weighted factor model, in which the procedure of making WFM concerns developing preset criteria…

Answered: 6. Company X wanted to make a…

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

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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.
Given is a decision payoff table. Alternatives Small Facility Medium Facility Large Facility Low 26 18 -7 Future Demand Moderate 21 31 30 High 18 22 42 a) The best decision under uncertainty using MAXIMAX is to select Blank 1 facility b) The best decision under uncertainty using MAXIMIN is to select Blank 2 facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select Blank 3 facility d) If the probabilities for Future Demand when it is Low-0.35, Moderate -0.30, and High-0.35, the expected monetary value (EMV) for the large facility-Blank 4.
b. An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. 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 6 8 10 14 16 18 20 0 (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.
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.
Assistance please. 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.
Dennison Manufacturing makes large helical springs used inaircraft landing gear. The company has narrowed its potentialchoices for its new manufacturing facility to four cities. Thefollowing information is known about the manufacturing andshipping costs of locating in each of these four cities: a. Use break-even point analysis to determine where Den-nison should locate.b. Based solely on break-even quantity, if Dennison’s manu-facturing forecast for the foreseeable future is 40,000 unitsannually, where should he locate?
Q Let us assume that a new medical facility, Health-care, is to be located in XYZ city. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? Sr Location factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 10 5 4 2 Total patient per month 8 4 2 3 Average time per emergency trip 5 4 5 4 Land and construction costs 6 3 4 5 Employee preferences 7 4 4 6 Operations Facility 8 4 3
a. 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. b. The staff training centre of a telecommunications company provides training for itsregional employees every year. The capacity of the training centre was designed to train1,800 employees per year. Due to the complexity of the programmes, the mostemployees that centre can train per year is 1,400. In the past year, 1,350 employees wereMGMT2026 Production and Operations Managementtrained. Calculate:-i. The efficiency rate of the…
Explain by giving an example how the lowest cost (scoring) method is used among the methods used for the selection of establishment location.
Considering the following data:Location Alternatives(scored out of 100 pts each)Factors Weights A B CConvenience 0.15 86 85 78Parking Facilities 0.20 78 78 92Display Area 0.18 90 89 90Shopper Traffic 0.27 91 92 85Operating Costs 0.10 98 95 90Neighborhood 0.10 88 91 85a. Using the above factor ratings, calculate the composite score for each location.b. Determine which location alternative (A, B, or C) should be chosen on the basisof the maximum composite score.
Given is a decision payoff table. Alternatives Low Future Demand Moderate High 91 130 102 81 Small Facility 111 Medium Facility 51 Large Facility -12 124 126 a) The best decision under uncertainty using MAXIMAX is to select Blank 1 facility b) The best decision under uncertainty using MAXIMIN is to select Blank 2 facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select Blank 3 facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the expected monetary value (EMV) for the large facility Blank 4. e) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the best decision under risk is to select Blank 5 facility.
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

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