Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 13, Problem 4AME
Summary Introduction
Interpretation: The load distance score after determination of center of gravity to decide on the location of a facility is to be improved.
Concept Introduction: Center of gravity, the method is one of the methods used to determine the theoretical geographical location with minimum costs. The load center method is another method that minimizes the load distance. Both methods have their own utility and limitations.
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Q2k
Audi is considering three locations A, B and C for the production of its new model SUV
XL500. The objective is to choose the location with the lowest costs. The costs are
measured as annual fixed costs plus the variable costs of the product. The following
data has been collected for the three locations.<
Region
Fixed costs per year
A
B
C
10 000 000
20 000 000
25 000 000
Variable cost per unit
1. at what level of production will C be the best choice?
2. at what production rate will A be the best choice?
3. at what level of production will B be the best choice?
2500
2000<
1000<
The company's projected annual production in the new plant is 0-60 000 units.<
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ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs.
Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this
Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed
Use the photo attached to answer the following question,
1.Using the centre of gravity location technique, determine the best location that will minimize total travel distance.
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Chapter 13 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7P
Ch. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 1AMECh. 13 - Prob. 2AMECh. 13 - Prob. 3AMECh. 13 - Prob. 4AMECh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VC
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