978-1285451374 Chapter 9 Solution Manual Part 2

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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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(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