Fruit Centre Ice Cream Parlor is deciding where to locate a new facility. The annual fixed costs, initial fixed costs and variable costs for each site have been estimated as follows; Location Annual Fixed Costs (shs) Initial Fixed costs selling price (shs) Variable costs(shs) Namugongo 35,000 400,000 200/unit 200/unit Kireka 19,000 250,000 400/unit 45/unit Banda 15,000 200,000 600/unit 2500/unit Ntinda 95,000 170,000 100/unit 360/unit If demand is expected to be 2000 units, which location is best? and Forecasting is a key component in operations management. Identify and describe any three methods of forecasting that you would recommend to a service industry.
Fruit Centre Ice Cream Parlor is deciding where to locate a new facility. The annual fixed costs, initial fixed costs and variable costs for each site have been estimated as follows; Location Annual Fixed Costs (shs) Initial Fixed costs selling price (shs) Variable costs(shs) Namugongo 35,000 400,000 200/unit 200/unit Kireka 19,000 250,000 400/unit 45/unit Banda 15,000 200,000 600/unit 2500/unit Ntinda 95,000 170,000 100/unit 360/unit If demand is expected to be 2000 units, which location is best? and Forecasting is a key component in operations management. Identify and describe any three methods of forecasting that you would recommend to a service industry.
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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Fruit Centre Ice Cream Parlor is deciding where to locate a new facility. The annual fixed costs, initial fixed costs and variable costs for each site have been estimated as follows;
|
Location |
Annual Fixed Costs (shs) |
Initial Fixed costs |
selling price (shs) |
Variable costs(shs) |
|
Namugongo |
35,000 |
400,000 |
200/unit |
200/unit |
|
Kireka |
19,000 |
250,000 |
400/unit |
45/unit |
|
Banda |
15,000 |
200,000 |
600/unit |
2500/unit |
|
Ntinda |
95,000 |
170,000 |
100/unit |
360/unit |
- If demand is expected to be 2000 units, which location is best? and
Forecasting is a key component in operations management. Identify and describe any three methods of forecasting that you would recommend to a service industry.
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