Exam 11: Supply Chain Location Decisions

Bill Burns,district manager of the Pizza Palace,wishes to locate a new store in the metropolitan areas.Using the following information,what are the x and y coordinates for the center of gravity? Don't round your answer up or down before making your choice.

Table 11.7 Nuts-and-Bolts,Inc.wishes to find the best location for a plant that will satisfy customer demand in the following five areas. -Use the information in Table 11.7.If the plant is located at the coordinates (5,5),what is the total load-distance score,assuming rectilinear distance?

Table 11.5 Paul's Pretzels manufactures and distributes gourmet pretzels for limited retail sales.Paul has determined the "demand points" and their relative locations as follows: -Use the information in Table 11.5.If a facility were to be located at (15,15),what would be the load-distance score? (Assume rectilinear distance. )

Which of the following statements about company relocations is best?

Which of the following is NOT a step in setting up a transportation tableau?

Which of these distance calculation methods provides the most accurate input to a load-distance calculation?

Table 11.10 Sagebrush Company has four warehouses (A,B,C,and D)that require monthly shipments of 250,200,300,and 200 units per month,respectively.Its three plants (1,2,and 3)have monthly capacities of 300,400,and 450,respectively.Plant capacities,warehouse needs and shipping costs (in $)are shown in the following initial transportation method tableau.For example,the shipping cost from Plant 1 to Warehouse A is $17 per unit.A second table showing POM for Windows results from running this transportation problem is shown below the tableau. -Use the information in Table 11.10.The low cost solution indicates a total cost of:

A grower and shipper of fresh gourmet herbs has determined the following demand forecast for the five metropolitan markets that the firm serves.Based on your calculations of the center of gravity,where should the new herb farm be located?

Table 11.3 Durham Toy,Inc.has five distribution centers at the location coordinates given as follows.The monthly demand at each center is also given. -Use the information in Table 11.3.If the plant is located at the center of gravity,what is the load-distance score,assuming rectilinear distance?

Many firms are concluding that large,centralized manufacturing facilities in low-cost countries with poorly trained workers are not sustainable.

A single facility is needed to meet the demand of four regions depicted as follows: If the plant is located at A,what is the total load-distance score,assuming Euclidean (straight line)distance?

Geographical Information System (GIS)tools are useful in solving single-facility location problems,but because of software limitations,cannot be used for determining multiple-facility locations.

Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.Fixed and variable costs follow. Which of the following statements is best?

Pick any three methods of making a single facility location decision;rank them according to the scope of factors considered,and explain your reasoning.

As legend has it,Buddhist monks trained monkeys to gather the youngest leaves from the tops of wild tea trees.The deft,monkey -picked leaves are unbroken and evenly sized to create the finest oolong tea in the world.There are five plantations that use monkeys for this task and four tea centers where the leaves must be shipped.The cost to send a kilogram of leaves from each plantation to each tea center is shown in the table.Note that supply equals demand in this scenario.What is the optimal shipping scheme such that the total transportation cost is minimized?

Acme Fasteners desires to locate a new facility.Based on preliminary analysis,the choice has been reduced to four locations: A,B,C,and D.These four locations were rated on a scale from 1 (worst)to 10 (best)on each of four criteria.Each criterion was also weighted to indicate its importance (i.e. ,the higher the weight,the more important).The list of ratings and weights follows. Based on weighted scores,where should Acme locate its new facility?

Critical mass is a situation whereby several competing firms cluster near one location,and thus attract more customers than the total number who would shop at the same stores in scattered locations.

Table 11.4 Royal Flush Plumbing Supplies has the following demand forecasts for the five markets that it serves: -Use the information in Table 11.4.If Royal Flush decides to locate a warehouse at market D,what is the total load-distance score? (Use rectilinear distance. )

Table 11.12 Tanfastic,Inc. ,a manufacturer of swimwear,is in the process of developing a production plan for the coming spring break.The ending inventory for January is 30 units.Undertime is paid,at a rate of $5.00 per unit.Details are shown in the following POM for Windows table. -Use the information in Table 11.12.Given the information in the optimal tableau,what is the inventory carrying cost,in dollars per unit per quarter?

When a firm with a network of existing facilities plans a new facility,the new facility is assumed to operate independently of the existing ones.