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 7P
A
Summary Introduction
Interpretation: The location of construction of Phoenix metropolitan market should be determined.
Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital is brought together for progress of business.
B
Summary Introduction
Interpretation: The new location for Oscar closes to his new facility should be determined.
Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital is brought together for progress of business.
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Students have asked these similar questions
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 firm that recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi MS; or Birmingham, AL. Prepare an economic analysis of the three locations giving the following information. Annual costs for building, equipment, and administration would be $64,000 for Memphis, $74,000 for Biloxi, and $109,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $6 per unit in Biloxi, and $6 per unit in Birmingham. The Memphis location would increase system transportation costs by $63,000 per year, the Biloxi location by $73,500 per year, and the Birmingham location by $25,900 per year. Expected annual volume is 14,900 units.
Total Cost
Memphis _______________
Biloxi _______________
Birmingham _________________
Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper
land costs, but the variable costs in Dallas are higher because shipping distances would increase.
Dallas
$600,000
$27/radio
Detroit
$840,000
$21/radio
a) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above 40,000
b) Dallas's fixed costs have increased by 10%. Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above
Fixed costs
Variable costs
radios
radios
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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- Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Dallas Detroit $600,000 $30/radio Fixed costs $780,000 Variable costs $22/radio a) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above radios. 27,000 97,497 22,500 74,996arrow_forwardLet us assume that a new medical facility, Health-care, is to be located in XYZ city. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method? in the following table. Which is the best location based on factor rating method? Sr Location factor Factor Rating Rating Location 1 Location 2 1 Facility utilization 10 5 4 2 Total patient per month 8 4 2 3 Average time per emergency trip 5 4 5 4 Land and construction costs 6 3 4 5 Employee preferences 7 4 4 6 Operations Facility 8 4 3arrow_forwardPopulate the relevant data Is any alternative never preferred? Complete a numeric locational cost-volume Indicate over what range each of the alternatives A, B, C is the low-cost choice Costs A B C Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 20+6 23+6 15+6arrow_forward
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