Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below along with their cost structure. His marketing director feels that its premier model, The Tyreek, could become the dominant model in the market. If volume is extremely high, which location will have the lowest cost?
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- An operations manager wants to use factor rating method to decide the location of a new restaurant. Weights of the three factors specified, and the scores of two options are shown in the table below. Which option should the operations manager choose and what is the weighted score of this option? Factor Weight Option 1 Score Option 2 Score Proximity to the University 0.5 90 80 Rental Cost 0.3 80 100 Size 0.2 70 70 Option 2, weighted score = 84 Option 2, weighted score = 83 Option 1, weighted score = 83 There is no difference between the two options Option 1, weighted score = 84What is meant by the terms “flexibility,” “expansion,” and “access” in site selection for a processing plant?Develop a network showing the origin nodes, destinations, arcs, cost per arc, supply, and demand. Match the correct answer to each question. Warehouse A B C D City E City F City G City H Warehouse Supply. 0.51 0.21 0.52 0.41 4000 Question 1 0.31 Question 2 0.56 0.43 0.35 0.41 0.28 City Demand 4,400 3,000 6,500 4,700 Match the correct answer to the following questions: 1. What is the supply constraint for Warehouse D? 2. What demand constraint for City H? 0.32 0.54 0.33 4000 0.54 0.34 0.52 6300 6000 [Choose ] [Choose ] > >
- The Zhao family of Atlanta, Georgia, is planning its annual summer vacation. Three vacation locations along with criteria weights and location ratings follow. What is the recommended vacation location? Criteria Travel distance Vacation Entertainment available Outdoor activities Unique experience Family fun O Myrtle Beach, South Carolina OSmoky Mountains Branson, Missouri Weight 2 5 3 2 4 5 Myrtle Beach, South Carolina 5 5 7 9 5 8 Ratings Smoky Mountains 9 6 4 6 9 9 Branson, Missouri 3 8 4 5 9 8During a major expansion in 2004, Douwalla’s Import Company developed a new processing line for which the delivered equipment cost was $1.75 million. This year, the board of directors decided to expand into new markets and expects to build the current version of the same line. Estimate the cost if the following factors are applicable: construction cost factor is 0.20, installation cost factor is 0.50, indirect cost factor applied against equipment is 0.25, and the total plant cost index has risen from 2509 to 3713 over the years.A firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location. Use algebra to determine the crossover points.
- A firm that has recently experienced enormous growth is seeking to lease a small plant in Memphis,TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given thefollowing information: Annual costs for building, equipment, and administration would be $40,000for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected tobe $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000per year, and the Birmingham location by $25,000 per year. Expected annual volume is 10,000 units.A firm that recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi MS; or Birmingham, AL. Prepare an economic analysis of the three locations giving the following information. Annual costs for building, equipment, and administration would be $64,000 for Memphis, $74,000 for Biloxi, and $109,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $6 per unit in Biloxi, and $6 per unit in Birmingham. The Memphis location would increase system transportation costs by $63,000 per year, the Biloxi location by $73,500 per year, and the Birmingham location by $25,900 per year. Expected annual volume is 14,900 units. Total Cost Memphis _______________ Biloxi _______________ Birmingham _________________A manager received an analysis of several cities being considered for a new office complex. The data (10 points maximum) are as follows: Factor Business services Community services Real estate cost Construction costs Cost of living Taxes Transportation A с Thus, Location Score A A B с Thus, 17 17 17 8 6 4 3 2 8 9 B 6 6 Click here for the Excel Data File a. If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? 8 7 7 19 19 19 5 7 is/are the best. C 6 7 7 6 8 b. If business services and construction costs are given weights that are double the weights of the other factors, how would the locations stack up? is/are best and 4 8 is/are least desirable.
- The following table shows the fixed cost and variable cost for 3 locations. Construct cost curves for these 3 locations for production from 0 to 200 units at 20 units intervals. What would be the range of production units that would give Location A a competitive advantage? What would be the range for Location B and Location C, respectively?An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Fixed Cost Variable Cost Location A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 i. ii. 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) Plot the total cost curves in the chart provided above and identify the range over which each location would be best. [7 marks] Use break-even analysis to calculate exactly the break-even quantity that defines each range. [3 marks]A small firm produces and sells novelty items in a five-barangay area. The firm expects to consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely scattered locations. The leading candidate for location will have a monthly fixed cost of Php42, 000 and variable costs of Php3 per card. Cards sell for Php7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break-even point?