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OM5 C9 IM
10.* MicroFix provides computer repair service on a contract basis to customers in five
sections of the city. The five sections, the number of service contracts in each
section, and the x, y coordinates of each section are as follows:
Coordinates
Section No. of Contracts x y
Use the center-of-gravity method to determine an ideal location for a service center.
11. A supply chain manager faced with choosing among four possible locations has
assessed each location according to the following criteria, where the weights reflect
the importance of the criteria. How can he use this information to choose a location?
Can you develop a quantitative approach to do this?
Location
Criteria Weight 1 2 3 4
Raw material
Points VG = Very good: 5 points
G = Good: 4 points
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OK = Acceptable: 3 points
P = Poor: 1 point
Location Total Points
Thus, we would prefer locations in the order 1 (best), 2, 4, and 3 (worst). Most
12. Research a supply chain for an organization of interest to you and draw a flowchart
of its key components similar to Exhibit 9.2. Describe and explain the location of
the push-pull boundary.
A push–pull system in business describes the movement of a product or information
between two subjects. On markets the consumers usually "pull" the goods or
information they demand for their needs, while the offerers or suppliers "pushes"
13. How can satellite-based global positioning systems improve the performance of
supply chains in the following industries: (a) trucking, (b) farming and food
distribution, (c) manufacturing, and (d) ambulance service?
All of these industries and their supply chains have benefited from GPS capabilities.
Truck and equipment routing, asset (and inventory) positioning and control,
(a) trucking – know location of each truck, reroute via a cell phone call to
improve route and emergency pickups and deliveries, less idle time, enhance
(b) farming and food distribution – know location, direction and speed on real
time basis of equipment such as tractors plowing a field, one day plowing and
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(c) manufacturing – inventory tracking, less chance to lose parts, minimize in
(d) ambulance service – minimize response times, similar to trucking where
can reroute on a moments notice, higher efficiency of ambulances, do more
For any of the above examples, say 30 GPS-guided ambulances and smart GPS
14. Research and write a paper on risks associated with global supply chains.
https://www14.software.ibm.com/webapp/iwm/web/signup.do?
source=gts-LITS-bus-conn-NA&S_PKG=601BV1FW&csr=csr_aguslitserm-031612
IBM (see web link) among others writes:
Is your organization at risk? Catastrophic events caused by nature, terrorism, financial
15. Research and write a paper on green and/or ethical supply chains similar to the box
“Sneakers with a Conscience – Veja’s Supply Chain.” Do these supply chains
incorporate all three dimensions of sustainability?
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Case Teaching Note: Boston Red Sox Spring Training
Overview
The objective of case study is to introduce students to the complexity of location
decisions and how to integrate economic and qualitative criteria (i.e., the multiple criteria
problem) to make an objective decision that fully benefits the county taxpayers. The case
data provides cost information, population locations, and many qualitative criteria. The
first step in this analysis is to compute an accurate center-of-gravity for the population of
the county.
Case Questions for Discussion
1. Using the center-of-gravity model compute the center of gravity for the
population of the county? Show all computations, explain, and justify.
The exhibit at the end of this TN computes the center of gravity to be Cx = 4.49
and Cy = 7.83. This center of the population for the county is very close to
2. Using a weighted scoring model of your own design what are the summary scores
for each stadium site for the qualitative criteria in Exhibit 9.8. (You must decide
how to scale and weight each criterion and whether to include or not include cost
estimates.) Show all computations, explain, and justify.
Notice the question asks “Show all computations, explain, and justify.” A few
characteristics of good scoring models include:
Scale all qualitative criteria on an ordinal scale. Students will use scales
Much explanation should accompany the justification of weights used per
Another approach is to divide total cost per site by the weighted average
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3. How will you combine these results (your center-of-gravity results. cost, and
qualitative criteria analyses? How might you compute a summary score for each
site using all three criteria? Explain and justify.
Most undergraduate students will have difficulty confronting how to combine
such data (i.e., the multiple criteria decision making problem) so expect a weak or
Student approaches include:
1st use the center of gravity model to exclude (screen) any sites that are too
2nd make the decision based on the weighted average scores of costs and
Rank order the three criteria (center of gravity, costs, qualitative) and
$ cost per acre (Site A 21,000,000/241 acres = $87,137/acre, Site B =
$ cost per weighted average point (see spreadsheet)
4. Research and explain at least three ways a sports stadium can “go green”
including at least one work practice for stadium employees. Do jobs and
processes have to change too?
Building Design
Catch rain water and use irrigation
Solar panels and generate a high percentage of total stadium power (ideally
the stadium powers itself)
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Supply Chain
Use biodegradable cleaning chemicals (e-friendly)
Use biodegradable and e-friendly fertilizer and grass seed
Work practices
Pay all stadium employees using electronic methods (no paper or cash)
5. What is your final stadium site recommendation? Explain and justify.
Most students will select Site A since it is close to the university, shopping
mall Y, an existing 8,000 seat indoor arena, population center #3, and has the
Postscript
The City Council decided on Site D arguing it would jump start
development of the commercial industrial park next to the airport, be close to
By locating at Site D (with site A as the 2nd choice and backup site) the
City Council members thought “the county” would get the “full benefit” of all
economic development and annual economic impact. If, for example, they
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Teaching Strategy
You can begin class by saying that the case involves a location decision of a leisure
service facility and you might want to read the quote -- (A great servicescape and facility
layout can seldom overcome a poor location decision, simply because customers may not
have convenient access.) You can also go over Exhibit 9.5 quickly if you want. Students
should have worked center of gravity homework before they do the case. You might also
make a list on the board in class based on their response to “What value chains and
respective processes are required for stadium operation?”
Then you can address the four assignment questions in class and make summary points
such as (i) the case illustrates the value of convenience and minimizing the distance
traveled for most of the county’s population, (ii) location decisions establish the
infrastructure of the value chain, (iii) the challenge of combining quantitative and
qualitative criteria in making a location decision, and (iv reveal what decision the City
Council actually made and why. This case normally takes 30 to 45 minutes to teach in a
case discussion format or students can present case informally (and the allocated time is
up to the instructor).
Boston Red Sox Spring Training Decision Case Study Analysis
Center-of-Gravity Model
Location
Coordinates
Total In and Outbound
Population Center No. X Y Population
Population Center-of-Gravity
Cx = 4.49
Cy = 7.83
Cost per Site Model*
Weight
s Site A Site B Site C Site D
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Qualitative Model*
Weight
s Site A Site B Site C Site D
*assume equal weights here
but read TN
Best
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