Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 8, Problem 27P
Summary Introduction
To determine: The best site.
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The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:
Site
Fixed Cost Per Year
Variable Cost per Unit
1
$800
$10.00
$5.00
$4.00
$1,100
3
$2,100
a) Afteř rounding to the nearest whole number, site 1 is best below
V units.
After rounding to the nearest whole number, site 2 is best between
V and
V units.
After rounding to the nearest whole number, site 3 is best above
V units.
b) If the demand is 1010 units, then the best location for the potential manufacturing plant is
The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:
Site
Fixed Cost Per Year
Variable Cost per Unit
1
$800
$12.00
2
$1,200
$5.00
3
$2,000
$3.00
a) After rounding to the nearest whole number, site 1 is best below
units.
After rounding to the nearest whole number, site 2 is best between
and
units.
After rounding to the nearest whole number, site 3 is best above
units.
b) If the demand is 47 units, then the best location for the potential manufacturing plant is
A new medical facility, Health-Watch, is to be located in Erie, Pennsylvania. The following table shows the location factors, weights, and scores (1 = poor, 5 = excellent) for one potential site. The weights in this case add up to 100 percent. A weighted score (WS) will be calculated for each site. What is the WS for this site?
Location Factor
Weight
Score
Total patient miles per month
Facility utilization
Average time per emergency trip
Expressway accessibility
Land and construction costs
Employee preferences
25
20
20
15
10
10
4
3
3
4
1
5
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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- Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.arrow_forwardSap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.arrow_forwardThe fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: a) Over what range of production is each location optimal?b) For a production of 200 units, which site is best?arrow_forward
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