Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter C, Problem 11P

Question:

•• C.12 Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit as shown in the table, decide which site is best.

Chapter C, Problem 11P, Question:  C.12 Dana Johnson Corp. is considering adding a fourth plant to its three existing

•• C.13 Using the data from Problem C.12 and the unit production costs in the following table, show which locations yield the lowest cost.

LOCATION PRODUCTION COSTS ($)
Decatur $50
Minneapolis 60
Carbondale 70
  East St. Louis 40
  St. Louis 50
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Question 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i.    Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
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