The Giant Farmer Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Florida; Denver, Colorado; Lincoln, Nebraska; and Jackson, Mississippi. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 8,000 cases per week is needed. The question is where to locate the new plant. Three potential sites are Buffalo, Atlanta, and Memphis. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered. Plant Chicago Houston New plant ated in Capacity (cases per week) A new plant should be located in 8,000 7,500 8,000 Total 23,500 Warehouse Miami Denver Lincoln Jackson Demand (cases per week) 5,000 9,000 4,500 5,000 Total 23,500 Plant Chicago Houston i Shipping Cost to Warehouse (per case) Miami Denver Lincoln Jackson $7.00 $2.00 $4.00 $5.00 $3.00 $2.00 $4.00 $3.00 $6.00 $9.00 $6.00 $2.00 $2.00 $12.00 $5.00 $6.00 $11.00 $6.00 Buffalo (alternative 1) Atlanta (alternative 2) Memphis (alternative 3) $2.00 For each alternative new plant location, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located? If the new plant is located in Buffalo, the optimal cost is $ (Enter your response as a whole number.) If the new plant is located in Atlanta, the optimal cost is $ (Enter your response as a whole number.) If the new plant is the optimal cost is $ (Enter your response as a whole number.) $4.00

Answer the given question with a proper explanation and step-by-step solution. SC consulting, a supply chain consulting firm, must decide on the location of its home office. Its clients are located primarily in the 16 states listed in the Table provided. These are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,428, Tulsa is $131,230, Denver is $140,000, and Seattle is $145,000. The expected numbers of trips to each state and the travel costs from each potential site are shown in Table. Each consultant is expected to take at most 25 trips each year. a. If there are no restrictions on the number of consultants at a site and the goal is to minimize costs, where should the home offices be located and how many consultants should be assigned to each office? What is the annual cost in terms of the facility and travel? b.    If, at most, 10 consultants are to be assigned to a home office, where…

The least cost theory is based upon finding the location with the lowest marginal and average total cost.  True  or   False?

An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Fixed Cost Variable Cost Location A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 i. ii. 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) Plot the total cost curves in the chart provided above and identify the range over which each location would be best. [7 marks] Use break-even analysis to calculate exactly the break-even quantity that defines each range. [3 marks]

How do facility location decisions differ for service facilities and manufacturing plants?

6.- Comfort Zone Furniture has plants in Boston, Dallas and Seattle, which ship their production to four demand centers, with the transportation costs indicated in the following table. Using the northwest corner method and stepping stone find the optimal solution. Boston Dallas Seattle Demand 1 $3 $6 $1 20 2 $5 $8 $9 60 3 $7 $5 $7 30 4 $4 $2 $3 40 Capacity 50 50 50 150

Describe Strategic Importance of Location Decisions?

Two alternative locations are under consideration for a new plant: Jackson, Mississippi, and Dayton, Ohio. The Jackson location is superior in terms of costs. However, management believes that sales volume would decline if this location were chosen because it is farther from the market, and the firm's customers prefer local suppliers. The selling price of the product is $400 per unit in either case. Use the following information to determine which location yields the higher total profit per year: i The annual profit from Jackson is $ The annual profit from Dayton is $ Annual Fixed Cost Location Jackson Dayton $1,000,000 $3,250,000 (Enter your response as an integer.) (Enter your response as an integer.) Variable Cost per Unit $45 $70 Forecasted Demand per Year 40,000 units 25,000 units

Explain the differences among factor rating, the load–distance model, and break-even analysis. What criteria does eachmethod use to make the location decision?

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