Chapter 08 – Location Planning and Analysis
44. Given the information below on scores of three location alternatives, which alternative
would you recommend? Why?
Chapter 08 – Location Planning and Analysis
45. Determine the center of gravity location for the destinations and shipping quantities
shown below:
Chapter 08 – Location Planning and Analysis
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46. Determine the optimum location for a distribution center to serve the following locations.
Shipments to each location will be approximately equal.
The Skulls, a student social organization, has two different locations under consideration for
constructing a new chapter 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:
Chapter 08 – Location Planning and Analysis
47. What would be total annual costs for the Alpha Ave. location with twenty persons living
there?
48. What would be total annual costs for either location at the point of indifference?
Chapter 08 – Location Planning and Analysis
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49. If it is estimated that thirty persons will be living in this new chapter house, which
location should the Skulls select?
50. If it is estimated that thirty persons will be living in this new chapter house, what would
be the Skull’s annual cost savings by selecting the less costly location, rather than the more
costly?
Chapter 08 – Location Planning and Analysis
51. What are total costs for site A for a quantity of 5,000 units per year?
52. What are total costs for site B for a quantity of 5,000 units per year?
53. What are total costs for site C for a quantity of 5,000 units per year?
Chapter 08 – Location Planning and Analysis
54. For what quantity would you be indifferent between selecting site A or site B?
55. For what quantity would you be indifferent between selecting site B or site C?
56. For what range of output would you prefer site A?
Chapter 08 – Location Planning and Analysis
57. For what range of output would you prefer site B?
58. For what range of output would you prefer site C?
59. Which site would you prefer for a quantity of 20,000 units per year?
Chapter 08 – Location Planning and Analysis
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60. For the preferred site for 20,000 units per year, what would be your total costs?
61. For the preferred site for 20,000 units per year, what would be your cost savings compared
to each of the other two sites?
A manufacturing firm is considering two locations for a plant to produce a new product. The
two locations have fixed and variable costs as follows:
Chapter 08 – Location Planning and Analysis
62. At what annual output would the company be indifferent between the two locations?
63. What would the total annual costs be for the Phoenix location with an annual output of
10,000 units?
Chapter 08 – Location Planning and Analysis
64. What would be the total annual costs at the point of indifference?
65. If annual demand is estimated to be 20,000 units, which location should the company
select?
Chapter 08 – Location Planning and Analysis
66. If the annual demand will be 20,000 units, what would be the cost advantage of the better
location?
A location analysis has been narrowed down to three locations. The critical factors, their
weights, and the ratings for each location are shown below:
67. What is the composite score for location A?
Chapter 08 – Location Planning and Analysis
68. What is the composite score for location B?
69. What is the composite score for location C?
Chapter 08 – Location Planning and Analysis
70. If the selection criteria is to be the greatest composite score, management should choose:
71. If the decisions rule is to select the location with the greatest composite score exceeding
80, management should choose:
Chapter 08 – Location Planning and Analysis
A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical
integration, the company is planning a new fabric production plant that will supply fabric to
all five clothing plants. The clothing plants have been located on a coordinate system as
follows:
72. If the amount of fabric shipped to each plant is equal, what is the optimal location for the
fabric plant?
Chapter 08 – Location Planning and Analysis
73. Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B,
400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal
location for the fabric plant?
A hardware distributor has regional warehouses at the locations shown below. The company
wants to locate a new central distribution center to serve this warehouse network.
74. If weekly shipments to each warehouse will be approximately equal, what is the optimal
location for the distribution center?
Chapter 08 – Location Planning and Analysis
75. Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4,
150; and WH5, 120. What is the optimal location of the distribution center?
76. Which of the following circumstances would be least likely to lead to a need for a new
location?
Chapter 08 – Location Planning and Analysis
77. Which of the following is least important as a consideration for a firm at the beginning of
a supply chain?
78. Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.
What would its total cost be at a monthly volume of 250 units?
Chapter 08 – Location Planning and Analysis
79. Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.
What would its total cost be at a monthly volume of 550 units?
80. Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10.
Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At
what volume would these locations have equal total costs?