Solution of Chapter 8 Operations Mangement by Jay Heizer

Service fixture last-placees tend to sharpen on the revenue function, whereas manufacturing/industrial location decisions tend to focus on costs. The attend sector uses techniques such as correlation coefficient abstract Traffic counts Demographic analysis Purchasing power analysis The industrial decision uses loony toons method promoter- ladinging tone-beginning Break-even analysis Crossover charts 8. Factors to consider when choosing a earth Exchange rank brass stability Communications systems within the country and to the home office Wage rates Productivity Transportation costsLanguage Tariffs Taxes Attitude towards unusual investors/incentives Legal system Ethical standards ethnic issues Supplies availability Market locations 9. Factors to consider in a region/community decision Corporate desires Attractiveness of region comminute issue Utilities Environmental regulations Incentives Proximity to crude(a) materials/customers Land/construction costs 10. locate loca tion computes Size and cost Transportation systems Zoning Proximity of services/supplies required Environmental impact END-OF-CHAPTER PROBLEMS 8. 1(a)Six laborers to each(prenominal) one reservation $3 per day can piddle 40 units. b)Eight laborers each making $2. 50 per day, can produce 45 units. (c)Two laborers, each making $64 per day, can come upon snow units. chinaw are is most economical, assuming transportation costs are not included. 8. 2Malaysia China Montana China is most favorable. 8. 6Atlanta Charlotte Charlotte is better. 8. 7 Suburb B has the highest rating, but weights should be examined using sensitivity analysis, as the final ratings are all close. 8. 8 localisation of function Present berth Newbury Hyde put 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 keep down Points 49 Total Points 50. 5 0 Total Points 54. 5 It appears that Hyde Park represents the best alternative. 8. 9(a) lettuce = 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 quaternion are quite close, with Chicago and Milwaukee close tied.Chicago has the largest rating, with a 33. b)With a cutoff of 5, Chicago is unacceptable because it haemorrhoid only 4 on the second factor. Only Milwaukee has scores of 5 or higher on all factors. 8. 10 side A Factor Weight range weight Score 1 5 100 500 2 3 80 240 3 4 30 long hundred 4 2 10 20 5 2 90 clxxx 6 3 50 one hundred fifty Total weighted score 1210 fixing B Factor Weight place Weighted Score 1 5 80 400 2 3 70 210 3 4 60 240 4 2 80 clx 5 2 60 great hundred 6 3 60 one hundred eighty Total weighted score 1310 Location C Factor Weight Rating Weighted Score 1 5 80 400 2 3 100 300 3 4 70 280 4 2 60 great hundred 5 2 80 160 6 3 90 27 0 Total weighted score 1530 ground on the total weighted scores, Location C should be recommended. Note that natural weights were used in computing these weighted scores (we just multiplied weight times rating). Relative weights could bedevil been used instead by fetching 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 position 3 has the highest rating factor, 86. 65, and should be selected. 8. 12(a)The following(a) figure indicates the plenty range for which each site is best. put 1 is best for production slight than or friction match to 125 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 t he range from 03,570 units.Burlington is lowest cost at each volume exceeding 3,570, but less than 25,000 units. Atlanta is never 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 hot hub should be near (5. 15, 7. 31). 8. 17 urban center Map 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 facility should be near (7. 97, 6. 69).