EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 6, Problem 5PA
Summary Introduction
Interpretation: The X and Y coordinate of a facility needs to be determined based on given information using Centre of Gravity method.
Concept Introduction: The Center of Gravity method is useful in determining suitable facility locations by keeping in mind the market demand and transportation costs.
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Students have asked these similar questions
The Davis national drugstore 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:
Location
Market
Coordinates
Number of
Segment
x
y
Customers
1
5
22
2,200
2
17
20
300
3
5
3
1,400
4
10
3
3,000
Find the best location using the Center of Gravity Excel template. Round your answers to two decimal places.
Cx: ____________Cy: ______________
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
Identify three important factors that a location planner may consider with respect to each of the following: A super-specialty intensive care unit An automobile manufacturing unit
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