Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 8, Problem 24P

a)

Summary Introduction

To determine: The recommended site for company EE using factor rating method.

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.

b)

Summary Introduction

To determine: The range of values which gives the recommended site as optimal location.

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Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atla nta (A),Baltimore (B), Chicago (C), or Dallas (D). The factors, scores,and weights follow:                                                                                                                                               a) Using the factor-rating method, what is the recommended site for Eagle Electronics's new facility?b) For what range of values for the weight (currently w7 = I 0) does the site given as the answer to part (a) remain a recommended site?
Accel Express, Inc., collected the following information on where to locate a warehouse (1 = poor, 10 = excellent):     Location Score Location Factor Factor Weight A B Construction costs 10 8 5 Utilities available 10 7 7 Business services 10 4 7 Real estate cost 20 7 4 Quality of life 20 4 8 Transportation 30 7 6 a. Which location, A or B, should be chosen on the basis of the total weighted score?b. If the factors were weighted equally, would the choice change?
Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives: stay where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as shown: Factor Description Hyde Park Factor Weight Present Newbury Location 1 Average community 0.30 40 60 50 income Community growth potential 2 0.15 20 20 80 Availability of public transportation 0.20 30 60 50 Labor availability, attitude, and cost 4 0.35 80 50 50 a) Based on the given information, the best location for Marilyn Helm Retailers is to open the new retail outlet in with a total weighted score of 3.
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