Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Discuss briefly what is location service facilities?
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- Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $5/ton $11/ton.... $18/ton.... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data = • The cost fi of building plants in these cities is fi $10,000,000 in Seattle. Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity kį of 400 tons/day and 700 tons/day respectively. $5,000,000 in Denver and f2 = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d, for Los Angeles, Topeka, and New…arrow_forwardName several ways that technology has ang impact on location decisionsarrow_forwardIdentify five production facilities within a polymer manufacturing facility. Explanatory diagrams, images and or sketches.arrow_forward
- state and discuss factors that affect plant location decisionarrow_forwardProblem 8-10 Factor Initial cost Traffic Maintenance Dock space Neighborhood Location East #1 East #2 West Weight East #1 100 60 20 24 15 0 00 00 N West East #1 East #2 8 8 4 4 2 East #2 110 35 25 24 9 a. Using the above factor ratings, calculate the composite score for each location. West 110 35 Composite Score 25 13 11 b. Determine which location has the highest composite score:arrow_forwardProblem 8-4 (Algo) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $285,000 per year, and variable costs would be $570 per boat. Subcontracting would involve a cost per boat of $2,570, and expansion would require an annual fixed cost of $59,000 and a variable cost of $1,040 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B с Answer is not complete. or to to more b. Which alternative would yield the lowest total cost for an expected annual volume of 70 boats? C. What other factors might be…arrow_forward
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