Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Discuss the key factors that impact location decisions. As an example, if locating a facility in India, what location decisions would a fast-food chain have to consider as compared to the location decisions of a software company?
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- When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?arrow_forwardWhy does Hard Rock put such serious effort into its location analysis?arrow_forwardTATA Motors is considering three sites - A, B, and C - at which to locate a factory to build its new-model automobile, the TATA SUV XL500. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable cost of production. TATA Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $11,000,000 $2,000 B $20,000,000 $1,400 C $27,000,000 $550 The firm knows it will produce between 0 and 60,000 SUV XL500s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. Find the range of the production volume for which a)site A is optimal. b)site B is optimal. c)site C is optimal.arrow_forward
- Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $10,000,000 $2,600 B $20,000,000 $1,900 C $30,000,000 $1,100 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) The value of volume, V, of production above which site C is recommended = nothing Sport C150s (round your response up to the next whole number). b) The value of volume, V, of production below which site A is…arrow_forwardWhat does the term "nature of location decisions" mean?arrow_forwardHyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.arrow_forward
- Although 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_forwardHow does Dell technology initiate a facilities location or relocation project? What are the pros and cons of domestic vs. international locations?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 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_forward
- sniparrow_forwardA firm in Ohio is thinking of buying a plant from a regional business group located in a Southeast Asian country. The business group selling the plant has questionable labor and management practices, some of which are also in conflict with the OSHA (Occupational Safety and Health Administration) and EPA (Environmental Protection Agency) regulations. What ethical and environmental factors should the U.S. firm consider before finalizing the plant location decision?arrow_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_forward
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