OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 18, Problem 5P
Summary Introduction
To decide: On the location of the proposed warehouse by ABC company.
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CVS chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment along with the coordinates are as follows:
Market Segment
Location
Coordinates
Number of Customers
x
y
1
8
13
2000
2
10
16
800
3
4
8
1600
4
12
4
3200
Find the best location using the Center of Gravity Excel template
Travel
Passengers
1
405
2
410
3
420
4
415
5
412
6
420
7
424
8
433
9
438
10
440
11
446
12
451
13
455
14
464
15
466
16
474
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476
18
482
a) Using a weighted moving average with three periods, determine the sales for day 15. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively
b) Find the MAD, MSE and MAPE
b) Use exponential smoothing with a smoothing constant of 0.50 to forecast the sales (Assume that last period’s forecast for period 1 is equal to actual to begin the procedure (Ft1=Yt1). Which method do you think is best? Is this an improvement over the weighted average- use MAD only
Using the center-of-gravity model, locate the X and Y coordinates of a warehouse to serve three different customers as follows:
Chapter 18 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
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- Which of the measure(s) of central location can be used for both numerical and categorical variables? Choose from: mean, median, mode, and trimmed mean.arrow_forwardThe ABC Company plans to locate a warehouse using the center-of-gravity model to serve four different customers. Find the coordinates for the warehouse given the following information:arrow_forward3. Figure 1 Daily Subway and Bus Use in Five Major Cities 0.75 0.5 0.25 Subway OBus London Tokyo Singapore Hong Kong Figure 2 Subway vs. Bus Ridership, New York City OBus Subway 1970 1980 1990 2000 2010 Information in figure I suggests that public transportation users in London Information in Figure I supports the author's point that buses are growing in popularity as a means of urban transport by indicating that A) take subways and buses at similar rates. B) are unusually reliant on buses. C) take at least one subway trip daily. D) take subways at about the same rate as people A) many people around the world take at least one bus trip every day. B) bus ridership surpasses subway ridership in some major cities. C) people in Tokyo make far more trips by bus daily than they do trips by subway. D) the number of bus trips taken by people in major cities has substantially increased. in New York. 2 Which of the following statements about bus use in New York City is best supported by…arrow_forward
- East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. Calculate the volume-weighted center of gravity. X-coordinate Y-coordinate Volume Athens, Texas 30 40 100 Beaumont, Texas 20 15 400 Carthage, Texas 55 60 150 Denton, Texas 20 70 250arrow_forwardSuppose that you are an engineer tasked with finding a new location for your distribution center (let's say you work as an industrial engineer at a cosmetics company). You have a good idea of who your customers are and how many tons of cosmetics you must ship per week. Using your company headquarters as the origin, you plot out the following table: Customer x-location (miles) y-location (miles) Quantity (tons/week) JC Penney 10 280 3 BB&B 70 180 7 Target 80 160 4 Bath&Body Works 170 20 5 Walmart…arrow_forwarda. A farmers' cooperative association plans to build a new sugar mill in Georgetown. The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs. The members of the co-op believe that the center-of-gravity method is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly clustered around six villages. Using the data below, use the center-of-gravity method to calculate the coordinates of the best location for this mill. All mileage references use Browns Town as (0,0). Village Barney Valley Blue Pasture Congo Valley Bower Rabacca Salem Miles East of Miles North of Sugar Cane Browns Town Browns Town 90 140 20 50 100 10 10 60 70 20 80 120 tonnage 240,000 320,000 450,000 120,000 60,000 140,000arrow_forward
- Fit a linear trend curve by the least-squares method to the following data and determine trend values and then estimate levels of production in 2010 and 2025. Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Production (M Tons) 12 16 20 24 26 30 34 40 44 48 55arrow_forwardThe Walgreen chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment along with the coordinates are as follows: Find the best location using the Center of Gravity Excel template. Market Segment Location Coordinates Number of Customers x y 1 4 15 3300 2 10 13 900 3 5 2 1250 4 9 6 3500arrow_forwardProvide the diagram of the model and analyse a Singapore country using the Porter's Diamond Model.arrow_forward
- We have four major customers, and want to find the location that minimizes the average distance traveled to deliver products to them. Customer X coord Y coord Demand A 10 10 100 B 15 40 20 C 35 12 20 D 38 40 150 What is the optimal X coordinate for our location?arrow_forwardUsing exponential smoothing method, forecast the demand for the fourth period. The historical demand for the previous three periods is 41, 42, and 43 respectively, assume Alpha =0.9 (Round to 2 decimals)arrow_forward10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A 25 26 27 28 29 30 B с 1 2 Based on the city distance dataset as follows: 3 4 5 6 7 8 9 1 Boston 2 Chicago 3 Dallas 4 Denver 5 LA 6 Miami 7 Phoenix 8 Seattle D Phoenix Chicago Denver Dallas 0 983 1815 1991 3036 1539 2664 2612 Boston Chicago Dallas Total trip miles by the traveler: Index Cities Seattle LA E Total trip miles 983 0 1205 1050 2112 1390 1729 2052 F Distance 1815 1205 0 801 1425 1332 1027 2404 G Denver LA 1991 1050 801 0 1174 2100 836 1373 H 3036 2112 1425 1174 0 2757 398 1909 I Miami 1539 1390 1332 2100 2757 0 2359 3389 J K Phoenix Seattle 2664 1729 1027 836 398 2359 0 1482 A resident of Seattle is embarking on a road trip that takes her to Los Angeles, Phoenix, Chicago, Denver, Dallas, and finally go back to Seattle. How many miles will she travel on this trip? Hint: Use INDEX and MATCH to answer the above question. 2612 2052 2404 1373 1909 3389 1482 0 L M Narrow_forward
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