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 9P

a)

Summary Introduction

To compute: The composite (weighted average) rating for each location.

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 site to be chosen.

c)

Summary Introduction

To determine: The site to be chosen.

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A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers,testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors. their weights, and the ratings for each location are shown in the following table. High scores represent favorable values                                                                                                  a) Compute the composite (weighted average) rating for each location.b) Which site would you choose?c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recompute as necessary and explain.
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
A location analysis has been narrowed down to two locations, A and B. The main factors in the decision will be supply of raw materials, which has a weight of .50, transportation cost, which has a weight of 0.4, and labour cost, which has a weight of .10. The ratings for raw materials, transportation, and labour are for A-60, 80, and 70, respectively; for B-70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:   options:   choose location B   none of the choices   reject both locations   choose location A   be indifferent between these locations
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