Question 1 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.
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Question 1
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.
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- Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.1. Using the center-of-gravity method, compute the centralized coordinates among the following locations, which are indicated via black cells with white text in LOCATION.xlsx: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 2. Using the weighted average center-of-gravity, which accounts for quantities to be shipped from locations, compute the centralized coordinates among the following locations: 7,1 10,1 4,2 2,5 6,6 9,6 2,8 6,10 *Quantities to be shipped are listed within the existing locations (i.e. Location 7,1 ships 17 units) in LOCATION.xlsxWhich of the following techniques works for location analysis for both service/retail/professional organizations as well as goods-producing organizations? A. Transportation method B. Traffic counts C. Factor-rating method D. Demographic analysis of drawing area.
- b. An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 6 8 10 14 16 18 20 0 (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs. Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designedDennison Manufacturing makes large helical springs used inaircraft landing gear. The company has narrowed its potentialchoices for its new manufacturing facility to four cities. Thefollowing information is known about the manufacturing andshipping costs of locating in each of these four cities: a. Use break-even point analysis to determine where Den-nison should locate.b. Based solely on break-even quantity, if Dennison’s manu-facturing forecast for the foreseeable future is 40,000 unitsannually, where should he locate?
- 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 ] > >1. What is the right business location? 2. What are the general criteria in selecting business location? Note: Please cite your referenceExplain the a ssumptions behind the center-of-gravity method. How can the model be used in a service facility location?
- The method for determining facility location which involves determining x and y co-ordinates of the proposed new location O a. Factor Rating Method O b. Locational Break-even Analysis O C. Transportation Method Od. Centroid MethodThe university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 350x1 + 425x2 + 425x3+ 465x4 + 485x5 + 365x6 s.t. x1 + x2 + x5 + X6 2 1 (Residence Hall A constraint) x1 + x2 + X3 2 1 {Residence Hall B constraint) X4 + X5 + X6 2 1(Science building constraint) X1 + X4 + X5 2 1{Music building constraint} x2 + x3 + X4 2 1{Math building constraint} x3 + X4 + X5 2 1{Business building constraint} x2 + x5 + X6 2 1{Auditorium…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.