Answered: An electronic manufacturer must expand…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

An electronic manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown in the table below.

Location factor	Factor weight	Location
A	B	C	D
Labour climate	20	5	4	4	5
Quality of life	16	2	3	4	1
Transportation system	16	3	4	3	2
Proximity to markets	14	5	3	4	4
Proximity to materials	12	2	3	3	4
Taxes	12	2	5	5	4
Utilities	10	5	4	3	3

Calculate the factor rating score for each location and identify the best location.

Sweetie Pies Bakery that is famous for its creative Moon Cake intends to open a new branch. It has identified three possible locations in Skudai, Ipoh and Kuantan to build the new branch. The following table contains information about the weight and score of factors for the three locations.

		Location (out of 100)
Factor	Weight	Skudai	Ipoh	Kuantan
Convenient	0.15	80	70	60
Parking Facilities	0.20	72	76	92
Cost of living	0.18	88	90	90
Traffic condition	0.27	94	86	80
Operation cost	0.10	98	90	82
Transportation	0.10	96	85	75
	Total=1.00

Using the factors rating, determine which location should be chosen on the basis of maximum composite score for Skudai, Ipoh or Kuantan. Which is the better location?

Curiously High Class, a company that handles wastage from restaurants in Selangor is trying to minimize the shipping cost for shipment to a disposal center from five receiving stations it operates. Given the locations of the receiving stations and the volumes to be shipped daily, determine the location of the disposal center.

Location of processing stations (x,y)	Volume tons per day
10, 5	36
4,1	13
4,7	28
2,6	38
8,7	43

A chain of home health care firms in Selangor needs to locate a central office from which to conduct internal audit and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. Each site, except for Subang, will be visited three times each year by a team of workers, who will drive from the central office to the site. Subang will be visited five times a year. Which coordinates represent a good central location for this office?

	MAP COORDINATES
CITY	X	Y
Kajang	9.2	3.5
Semenyih	7.3	2.5
Cheras	5.0	8.4
Subang	7.8	1.4
Kelana Jaya	2.8	6.5
Shah Alam	5.5	2.4
Damansara	5.0	3.6
Bangsar	3.8	8.5

(9 marks)

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