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- A manufacturer must choose between locating in Dallas (fixed cost of $60,000 / year and variable cost of $28 per unit) or Denver (fixed cost of $80,000 / year and variable cost of $22 per unit. Revenue per unit is $35 in either location. The expected demand is 20,000 units in Dallas and 15,000 units in Denver. ___________ 3a) Which location would produce the greater profit? ___________ 3b) How much is that profit?Debra began looking for physical locations that would fit with the theme of her online boutique while also having low overhead to maintain profitability and the competitive low prices for which her business has become known. Debra should consider.......... Select one: O a. a location in an industrial district. O b. a small complex in a downtown shopping area. O c. a beachfront villa that has been transformed into a store. O d. a warehouse with plenty storage space.A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. 1. Which alternative would yeild the higher profit for an annual demand of 3000 units? 2. Would the two locations yeild the same profit at a certain volume? If so, at what volume would that be?
- Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and demand. Match the correct answer to each question. Warehouse A B C D City E City F City G City H Warehouse Supply. 0.51 0.21 0.52 0.41 4000 Question 1 0.31 Question 2 0.56 0.43 0.35 0.41 0.28 City Demand 4,400 3,000 6,500 4,700 Match the correct answer to the following questions: 1. What is the supply constraint for Warehouse D? 2. What demand constraint for City H? 0.32 0.54 0.33 4000 0.54 0.34 0.52 6300 6000 [Choose ] [Choose ] > >ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. . If total fixed cost = 40000 AVC = 20 Price per unit = 10 Break even point = 40000 / 20 - 10= 4000 So at the 4000 units of production, there will be no profit and loss as the total revenue is equal to the total cost. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.Janice Gould of Krebs Consulting is in the process of makinga recommendation to a client regarding the corporate-widepurchase of an analytical software platform. She has madethe following estimates on management’s most importantperformance criteria and has rated three Software packagesacross these criteria a. Which software platform would you recommend?b. Assume that the client changes their mind and nowargues that the maintenance and support criterion isalready accounted for by the total cost criterion. Further,the client asks Ms. Gould to drop maintenance and support and add its factor weight to total cost. Will this clientrequest alter the recommendation?
- 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 $315,000 per year, and variable costs would be $600 per boat. Subcontracting would involve a cost per boat of $2,580, and expansion would require an annual fixed cost of $58,000 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 C or to OA OB OC to more b. Which alternative would yield the lowest total cost for an expected annual volume of 90 boats? c. What other factors might be considered in choosing between expansion…The following table shows the fixed cost and variable cost for 3 locations. Construct cost curves for these 3 locations for production from 0 to 200 units at 20 units intervals. What would be the range of production units that would give Location A a competitive advantage? What would be the range for Location B and Location C, respectively?A company that produces pleasure boats has decided to expand one of its lines. Current facilitiesare 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: fixedcosts would be $250,000 per year, and variable costs would be $500 per boat. Subcontractingwould involve a cost per boat of $2,500, and expansion would require an annual fixed cost of$50,000 and a variable cost of $1,000 per boat.a. Find the range of output for each alternative that would yield the lowest total cost.b. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?c. What other factors might be considered in choosing between expansion and subcontracting?
- Walmart is one of the largest corporations in the world, and it has obviously enjoyed tremendous success. But while many welcome its location in their communities, others do not. Some complain that its presence has too many negative effects on a community, ranging from traffic congestion to anti-union sentiment to unfair competition.Suppose Walmart has announced plans to seek approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each of these groups:1. Owners of small businesses located nearby2. Town residents, and residents of nearby townsHow might a Walmart representative respond to the negative criticisms that might be brought up, and what other benefits could the representative offer the planning board to bolster Walmart’s case for gaining the board’s approval?The piece of land available is situated on the main road through the area and has great views of MountKinabalu on one side and the valley below on the other side. As the strategic advisor you have been asked to come up with a recommendation whether to develop a 4-star or 5-star property. Due to the fact that the area is near a World Heritage site and due to building height restrictions the total number of rooms for a 4-star hotel would be 300 rooms, whilst for a 5-star property the number of rooms would be 190. Identify at least THREE (3) strengths and weaknesses each and at least TWO (2) opportunities and threats each for the proposed hotel/resort at that area. (Not for Mount Kinabalu as a tourist attraction!)5. Company Z wants to find a new place for a distribution center. They recently had some research and feasibility studies around the city and came up with four candidate locations. They were able to collect all the relevant costs of this investment under two main categories: fixed costs and variable costs. Based on the analysis the list of each cost type for all candidate locations are as follows: Fixed Variable Cost Cost 125000 Alternative A 27 Alternative B 175000 30 Alternative Ċ 150000 20 Alternative D 200000 13 a. Using the above table please approximate total cost of each investment candidate with a linear equation and write them for all four them. b. Please plot all of the equations you listed above on a two dimensional graph considering maximum yearly operation quantity/volume can be maximum 10000 units. (Hint: use total cost as y axis and the yearly operating quantity/volume as the x axis) c. Indicate which one(s) are the preferable option in terms of cost based on the total…