Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Identify some of the main reasons organizations need to make location decisions.
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- Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.arrow_forwardIdentify and clarify seven key factors affecting decision on the location?arrow_forwardIn deciding on where to locate their next grocery store, Publix narrowed it down to 3 locations (St. Augustine, the Airport area, or the Westside). They are using 2 criteria to make their decisions costs (with a weight of 70%) and customer base (with a weight of 30%). Each item was scored on a 10-point scale with 10 being the highest. St. Augustine rated a score of 4 for cost and 10 for customer base; the Airport area rated a score of 6 for cost and 5 for the customer base, and the Westside rated a score of 8 for cost and 2 for the customer base. __________ 2a. What is the computed mean score for each of the 3 locations? __________ 2b. Which location should be chosen based on the highest score?arrow_forward
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