Solution of Chapter 8 Operations Mangement by Jay Heizer

Service location decisions tend to focus on the receipts function, whereas manufacturing/industrial location decisions tend to focus on costs. The service vault of heaven uses techniques such as Correlation compendium Traffic counts Demographic analysis Purchasing power analysis The industrial decision uses transfer of training order agent-weighting approach Break-even analysis Crossover charts 8. Factors to get hold of when choosing a country give-and-take rates Government stability Communications systems within the country and to the situation office Wage rates Productivity Transportation costsLanguage Tariffs Taxes Attitude towards distant investors/incentives Legal system Ethical standards Cultural issues Supplies availability Market locations 9. Factors to consider in a region/community decision Corporate desires attractiveness of region Labor issue Utilities Environmental regulations Incentives Proximity to raw materials/customers contribute/construction costs 10. billet location factor outs Size and cost Transportation systems Zoning Proximity of services/supplies needed Environmental impact END-OF-CHAPTER PROBLEMS 8. 1(a)Six laborers individually make $3 per day can produce 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 around economical, assuming cargo ships 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 sensibility analysis, as the final ratings are all close. 8. 8 Location cede Location 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 Total Points 49 Total Points 50. 50 Total Points 54. 5 It appears that Hyde P ark represents the best alternative. 8. 9(a)Chicago = 16 + 6 + 7 + 4 = 33 Milwaukee = 10 + 13. 5 + 6 + 3 = 32. 5 Madison = 12 + 12 + 4 + 2. 5 = 30. 5 Detroit = 14 + 6 + 7 + 4. 5 = 31. 5 completely four are quite close, with Chicago and Milwaukee almost tied.Chicago has the largest rating, with a 33. b)With a cutoff of 5, Chicago is unacceptable because it pee-pees provided 4 on the second factor. Only Milwaukee has scores of 5 or higher on all factors. 8. 10 Location A Factor Weight ordain Weighted relieve oneself 1 5 100 500 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 Weighted Score 1 5 80 400 2 3 70 210 3 4 60 240 4 2 80 clx 5 2 60 120 6 3 60 180 Total weight 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 summarise weighted scores, Location C should b e recommended. Note that raw weights were used in computing these weighted scores (we just multiplied weight times rating). coition weights could have 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 volume range for which each site is optimal. Site 1 is optimal for proceeds little than or equal to 125 units. Site 2 is optimal for production between 125 and 233 units. Site 3 is optimal for production supra 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 is last(a) cost at any volume exceeding 3,570, but slight than 25,000 units. Atlanta is nev er 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 new hub should be conterminous (5. 15, 7. 31). 8. 17 City 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 move up (7. 97, 6. 69).