Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Question
Chapter 8, Problem 14DQ
Summary Introduction
To discuss: The statement with reference to proximity-to-markets and provide counter-examples
“Manufacturers locate near their resources, retailers locate near their customers”
Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.
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Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup its
distribution centre.
Setup a numerical example that can be used to demonstrate to the owner of the company how the technique can be used
Use the numerical example set up above to demonstrate how the centre of gravity location technique is used.
“Manufacturers locate near their resources, retailerslocate near their customers.” Discuss this statement, withreference to the proximity-to-markets arguments coveredin the text. Can you think of a counter-example in eachcase? Support your choices.
Maya ltd. wants to use the Centre of Gravity location technique to determine where to setup its
distribution centre.
What is the main objective of using this technique?
What information will be needed in order to use this technique?
Setup a numerical example that can be used to demonstrate to the owner of the company how the technique can be used
Use the numerical example set up above to demonstrate how the centre of gravity location technique is used.
Chapter 8 Solutions
Principles Of Operations Management
Ch. 8 - Prob. 1EDCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQ
Ch. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 1CSCh. 8 - Prob. 2CSCh. 8 - Prob. 3CSCh. 8 - Prob. 4CSCh. 8 - Prob. 1.1VCCh. 8 - Prob. 1.2VCCh. 8 - Prob. 1.3VCCh. 8 - Prob. 2.1VCCh. 8 - Prob. 2.2VCCh. 8 - Prob. 2.3VCCh. 8 - Prob. 2.4VC
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- What major issues should be considered when determining a retail site locatiarrow_forwardMaya ltd. wants to use the Centre of Gravity location technique to determine where to setup itsdistribution centre.Setup a numerical example that can be used to demonstrate to the owner of thecompany how the center of gravity technique can be used.arrow_forwardGovernment policy is an important factor in choosing a business location. Why?arrow_forward
- Suppose 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_forwardi. Using the centre of gravity location technique, determine the location coordinates that will minimize the transportation costs for their family of productsarrow_forwardUnderstand the differences between service and industrial-sector location analysisarrow_forward
- 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: ______________arrow_forwardIdentify five functions that these locations perform: Content aggregation, portals, and e-commerce among the many web-related subjects discussed.arrow_forwardAssume that as the newly appointed warehouse manager of Garden-William Logistics, you have decided to locate the warehouse in South Africa as other SADC countries did not provide to be as lucrative. It also meant that additional costs would not be incurred by having to set up an international warehouse office to manage the warehouse. Return to this screen and click the link above the red arrow to open the Discussion tool. In a new thread, answer the following questions: Determine which urban area would be best suited for Garden-William Logistics’ warehouse. Justify why you chose that urban area. Justify the choice in urban structure models.arrow_forward
- Give at least four reason for a global/foreign location. EXPLAINarrow_forwardList and discuss the Eight must have retail location principlesarrow_forwardGive a retail merchandise or service that you would like to develop, produce and market. Then, determine which location best suits your retailing business objective. Explain your answer.arrow_forward
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