Baltimore would have annual fixed costs of $80,000, labor costs of $6per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48.. A At an
Trang 18. For service organizations, the dominant factors in location analysis usually are marketrelated.
True False
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17. The lower cost of foreign labor is often offset by lower levels of productivity.
True False
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23. One of the reasons for the importance of location decisions is its strategic importance to the supply chains. True False
Trang 7of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a
$15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48
(A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?
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The Skulls, a student social organization, has two different locations under consideration for constructing a newchapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:
Trang 1574. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?
Trang 197. A strategy that emphasizes convenience for the customers would probably select a single very large facility. FALSE
Trang 2011. Webbased, retail businesses should be located near the customer to reduce their long distance phone charges.
Trang 2114. Technology has made communication with global operations as easy as local communication. FALSE
Trang 2320. The center of gravity method of location planning is accurate only when the quantities to be shipped to each location are equal.
Trang 2423. One of the reasons for the importance of location decisions is its strategic importance to the supply chains. TRUE
Trang 2629. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is _.
Trang 2938. The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is:
Trang 30of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
(A) Which alternative would yield the higher profit for an annual demand of 3,000 units?
(B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be?
A) At a volume of 3,000 units, Boston's profit would be $50,000 and Chicago's profit would be $180,000.B) At an annual volume of 400 units, both locations would have identical losses of $54,000
Trang 31$15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48
(A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits?
A) At an annual volume of 9,000, Albany's profit of $102,000 is higher than Baltimore's profit of $91,000.B) Profits for these two locations are identical at an annual volume of 20,000 units
Trang 33The Skulls, a student social organization, has two different locations under consideration for constructing a newchapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:
Trang 3449. If it is estimated that thirty persons will be living in this new chapter house, which location should the Skullsselect?
Trang 3610,000 units per year
Feedback: Divide the difference in fixed cost by the differed in variable cost. This leads to the point of indifference
Trang 38Stevenson Chapter 08
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74. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?
Trang 4679. Location choice I has monthly fixed costs of $100,000 and perunit variable costs of $10. What would its total cost be at a monthly volume of 550 units?