Solution of Chapter 8 Operations Mangement by Jay Heizer

Service location decisions die hard to focalise on the revenue function, whereas manufacturing/industrial location decisions tend to focus on lives. The service sector uses techniques much(prenominal) as Correlation abbreviation Traffic counts demographic analysis Purchasing power analysis The industrial decision uses Transportation method gene-weighting approach Break-even analysis Crossover charts 8. Factors to consider when choosing a country swop rate Government stability Communications systems at bottom the country and to the home office Wage rates Productivity Transportation costsLanguage Tariffs Taxes Attitude towards foreign investors/incentives reasoned system Ethical standards Cultural issues Supplies availability commercialise locations 9. Factors to consider in a region/ company decision Corporate desires Attractiveness of region patience issue Utilities Environmental regulations Incentives Proximity to au naturel(p) materials/customers territory/construction costs 10. lay location factors surface and cost Transportation systems Zoning Proximity of work/supplies needed Environmental impact END-OF-CHAPTER PROBLEMS 8. 1(a)Six laborers from each one qualification $3 per day chamberpot put forward 40 units. b)Eight laborers each making $2. 50 per day, can produce 45 units. (c)Two laborers, each making $64 per day, can make 100 units.China is most economical, assuming transferee costs are not included. 8. 2Malaysia China atomic number 109 China is most favorable. 8. 6Atlanta Charlotte Charlotte is transgress. 8. 7 Suburb B has the highest rank, but weights should be examined using sensitivity analysis, as the final ratings are all close. 8. 8 localisation of function Present jam Newbury Hyde Park Factor Wgt Wgt Wgt 1 40 0. 30 12 60 0. 30 18. 00 50 0. 0 15. 0 2 20 0. 15 3 20 0. 15 3. 00 80 0. 15 12. 0 3 30 0. 20 6 60 0. 20 12. 00 50 0. 20 10. 0 4 80 0. 35 28 50 0. 35 17. 50 50 0. 35 17. 5 substance Points 49 Tot al Points 50. 50 Total Points 54. 5 It appears that Hyde Park represents the best alternative. 8. 9(a) kale = 16 + 6 + 7 + 4 = 33 Milwaukee = 10 + 13. 5 + 6 + 3 = 32. 5 capital of Wisconsin = 12 + 12 + 4 + 2. 5 = 30. 5 Detroit = 14 + 6 + 7 + 4. 5 = 31. 5 All four are quite close, with boodle and Milwaukee almost tied.Chicago has the largest rating, with a 33. b)With a cutoff of 5, Chicago is unacceptable because it scores notwithstanding 4 on the second factor. Only Milwaukee has scores of 5 or higher on all factors. 8. 10 position A Factor Weight Rating weight Score 1 5 100 d 2 3 80 240 3 4 30 120 4 2 10 20 5 2 90 one hundred eighty 6 3 50 150 Total burden score 1210 Location B Factor Weight Rating heavy Score 1 5 80 cd 2 3 70 210 3 4 60 240 4 2 80 one hundred sixty 5 2 60 120 6 3 60 180 Total charge score 1310 Location C Factor Weight Rating Weighted Score 1 5 80 400 2 3 100 300 3 4 70 280 4 2 60 120 5 2 80 160 6 3 90 270 Total weighted score 1530Based on the total weighted scores, Location C should be recommended. Note that raw weights were used in computing these weighted scores (we just multiplied weight times rating). Relative weights could support been used instead by taking each factor weight and dividing by the sum of the weights (i. e. , 19). Then the weight for factor 1 would have been . Location C would still have been selected. . 11 Site 3 has the highest rating factor, 86. 65, and should be selected. 8. 12(a)The following figure indicates the book of account range for which each site is optimal. Site 1 is optimal for intersection less than or equal to cxxv units. Site 2 is optimal for production between 125 and 233 units. Site 3 is optimal for production preceding(prenominal) 233 units. (b)For 200 units, site 2 is optimal. 8. 13 (a) (b)For 5,000 units, Perth is the better option. 8. 14 VA AB BC 8. 15 (a) The total cost equations are (b)Denver is preferable over the range from 03,570 units.Burlington i s lowest cost at any volume exceeding 3,570, but less than 25,000 units. Atlanta is neer lowest in cost. Cleveland becomes the best site only when volume exceeds 25,000 units per year. (c)At a volume of 5,000 units, Burlington is the least-cost site. 8. 16 The proposed refreshful hub should be near (5. 15, 7. 31). 8. 17 City stand for Coordinates Shipping Load A 2, 1 20 B 2, 13 10 C 4, 17 5 D 7, 7 20 E 8, 18 15 F 12, 16 10 G 17, 4 20 H 18, 18 20 120 8. 19 The proposed new knack should be near (7. 97, 6. 69).