(a)
Interpretation:
The place where the company WC locates the inventory if the facility will produce the 5000 units annually.
Concept Introduction:
Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no
(b)
Interpretation:
The point of indifference between Hongkong and Singapore are as follows.
Concept Introduction:
Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no profit and no loss.
(c)
Interpretation:
The range that the company WC will prefer in the Niagara falls
Concept Introduction:
Break-even analysis is nothing but the technique by which an organization recognizes the sales volume when the total cost is similar to the total revenue so the organization becomes neutral and incur no profit and no loss.
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Practical Operations Management
- 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.< Askarrow_forwardAlthough most organizations may make the location decision infrequently, there are some organizations that make the decision quite regularly and often. Provide one or two examples. How might their approach to the location decision differ from the norm?arrow_forwardA 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_forward
- What are the advantages and disadvantages of a qualitative (as opposed to a quantitative) approach to location decision making?arrow_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:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 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_forwardWhat is meant by the nature of location decisions ?arrow_forward
- What are the major factors that firms consider when choosing a country in which to locate?arrow_forwardDiscuss what is meant by the nature of location decisions?arrow_forwardWhen an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forward
- Explain what is meant by the nature of location decisions ?arrow_forwardWhat factors affect region/community location decisions?arrow_forwardHow does Dell technology initiate a facilities location or relocation project? What are the pros and cons of domestic vs. international locations?arrow_forward
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