Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- sniparrow_forwardDecision Tree Analysisarrow_forwardSam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following data, which location would you recommend? Location Downtown Suburban Annual rent, including utilities $10,500 $7,250 Expected annual demand (sandwiches) 37,500 23,500 Average variable costs per sandwich $1.25 $1.20 Average selling price per sandwich $3.15 $2.80 Expected annual profits from the Downtown location are $ (Enter your response as an integer.) Expected annual profits from the Suburban location are $. (Enter your response as an integer.) Therefore, the V location should be recommended.arrow_forward
- Why is quality of life an element of intangible costs associated with location decisions? Provide an example as part of your discussion.arrow_forwardCalculate the weighted score for each location (A, B, C, D) shown in the table below: Factor Score for Each Location в Location Factor Factor Weight A D 1. Labor climate 2. Quality of Life 3. Transportation systems 4. Proximity to markets 5. Proximity to materials 6. Тахes 5 30 5 25 5 15 15 1 2 3 3 3 5 2 4 5 2 5 5 4 3 7. Utilities Total 100 The weighted score for location A is (Enter your response as an integer.) The weighted score for location B is. (Enter your response as an integer.) The weighted score for location C is s . (Enter your response as an integer.) The weighted score for location D isD. (Enter your response as an integer.) Which location would you recommend? O33 1243 +514 3 532t52arrow_forwardQuestions i. Calculate the weighted score for each alternative location. ii. Which location should be chosen?arrow_forward
- Q 32arrow_forwardThe fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site Fixed Cost Per Year Variable Cost per Unit 1 $600 $11.00 2 $1,000 $5.00 3 $2,100 $3.00 Part 2 a) After rounding to the nearest whole number, site 1 is best below 67 550 0 67 units. Part 3 After rounding to the nearest whole number, site 2 is best between 67 550 0 67 and 550 67 550 0 units. Part 4 After rounding to the nearest whole number, site 3 is best above 550 67 0 550 units. Part 5 b) If the demand is 57 units, then the best location for the potential manufacturing plant is SITE 1 SITE 3 SITE 2 SITE 1 .arrow_forwardA manager has received an analysis of several cities being considered for a new officecomplex. The data (10 pts maximum) are as follows:Location AlternativesFactors A B CBusiness Service 7 6 6Community Services 5 6 7Real Estate Cost 5 8 7Construction Cost 6 7 6Cost of Living 2 7 8Taxes 6 5 4Transportation 7 7 8a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores?b. If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack uparrow_forward
- A manager received an analysis of several cities being considered for a new office complex. The data (10 points maximum) are as follows: Factor Business services Community services Real estate cost Construction costs Cost of living Taxes Transportation A с Thus, Location Score A A B с Thus, 17 17 17 8 6 4 3 2 8 9 B 6 6 Click here for the Excel Data File a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? 8 7 7 19 19 19 5 7 is/are the best. C 6 7 7 6 8 b. If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack up? is/are best and 4 8 is/are least desirable.arrow_forwardCase-1 Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atlanta (A), Baltimore (B), Chicago (C), or Dallas (D). The factors, scores, and weights follow. SCORES BY SITE IFACTOR 1 Labor quality 2 Quality of life 3 Transportation WEIGHT (W) B C D A 20 4 4 5 16 2 3 4 16 3 4 3 2 Proximity to markets 4 14 5 4 4 5 Proximity to suppliers 6 Тахеs 7 Energy supplies 12 2 3 12 2 5 5 4. 10 4 3 3 a. Using the factor-rating method, what is the recommended site for Eagle Electronics's new facility? b. If the weight for "labor quality" drops to 10 and the weight for "Taxes" increases to 22, what is the new result? 3.arrow_forwardIn location planning, environmental regulations, cost and availability of utilities, and taxes are: Question 15Answer A. regional/community factors. B. irrelevant. C. site-related factors. D. global factors. E. country factors.arrow_forward
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