EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 6, Problem 1CQD
Summary Introduction
Interpretation:
Center of gravity for the population and the best stadium location.
Concept Introduction:
Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.
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William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations;
In what range of production volume would each of the locations be preferred (at the minimum cost)?
Variable cost
locations
Annual Fixed costs
per scanner
Cleveland, Ohio
$390,000
$34
South Bend, Indiana
$360,000
$37
Grand Rapids, Michigan
$310,000
$40
Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and
demand.
Match the correct answer to each question.
Warehouse
A
B
C
D
City E City F City G City H Warehouse Supply.
0.51
0.21 0.52 0.41 4000
Question 1
0.31
Question 2
0.56
0.43
0.35
0.41 0.28
City Demand 4,400 3,000 6,500 4,700
Match the correct answer to the following questions:
1. What is the supply constraint for Warehouse D?
2. What demand constraint for City H?
0.32 0.54 0.33 4000
0.54 0.34 0.52 6300
6000
[Choose ]
[Choose ]
>
>
Using the information about customer vehicle traffic to and from a proposed new sports stadium (not built yet), find the best location for the stadium that minimizes total
distance travelled using the center-of-gravity method.
Zip Code
Location Options
2
3
4
Coordinates of Location
X
2
9
12
13
y
4
5
6
12
Vehicles per
Stadium Event
4,300
4,700
1,100
2,000
Use the center-of-gravity method to determine an ideal location for a service center. Round your answers to two decimal places.
Cx:
Cy:
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