Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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What motivations typically cause firms to initiate a facilities location or relocation project?
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- 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?arrow_forwardThe 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 Capacity (cases per week) New plant Warehouse Plant Chicago Houston Buffalo (alternative 1) Atlanta (alternative 2) Memphis (alternative 3) 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…arrow_forwardGiven the dataset of a supply network in the following table: Location X co-ordinates Y co-ordinates Supply or demand Site 1 61 44 40 Site 2 12 16 Site 3 38 26 76 Site 4 6 22 72 63 22 54 Supplier 1 Supplier 2 26 8 77 18 62 37 Supplier 3 Supplier 4 8 65 43 Supplier 5 43 36 26 Supplier 6 8 41 68 a. Calculate the Euclidean distance from every potential site to every supplier b. Calculate the load-distance value for every potential site. c. Conclude on the best site with the lowest load-distance value.arrow_forward
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