Problem:1
A location analysis for Cook Controls, a small manu
facturer of parts for high-technology cable systems, has been nar. rowed down to four locations. Cook will need to train assemblers testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors, their weights, and the ratings for each location are shown in the following table. High scores represent favorable values.
|
FACTOR
|
WEIGHT
|
AKRON,
OH
|
LOCATION
BILOXI, CARTHAGE,
MS TX
|
DENVER,
CO
|
|
Labor availability
|
.15
|
90
|
80
|
90
|
80
|
|
Technical school quality
|
.10
|
95
|
75
|
65
|
85
|
|
Operating cost
|
.30
|
80
|
85
|
95
|
85
|
|
Land and construction cost
|
.15
|
60
|
80
|
90
|
70
|
|
Industrial incentives
|
.20
|
90
|
75
|
85
|
60
|
|
Labor cost
|
.10
|
75
|
80
|
85
|
75
|
a) Compute the composite (weighted average) rating for each location.
b) Which site would you choose?
c) Would you reach the same conclusion if the weights for oper¬ating cost and labor cost were reversed? Recompute as neces¬sary and explain.
Problem:2
18 Hyundai Motors is considering three sites-A, B, and C at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data:
|
SITE
|
ANNUALIZED
FIXED COST
|
VARIABLE COST PER
AUTO PRODUCED
|
|
A
|
$10,000,000
|
$2,500
|
|
B
|
120,000,000
|
52,000
|
|
C
|
$25,000,000
|
S1,000
|
The firm knows it will produce between 0 and 60,000 Sport Cl 50s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.
a) For what values of volume, V, of production, if any, is site C a recommended site?
b) What volume indicates site A is optimal?
c) Over what range of volume is site B optimal? Why?
Problem:3
The following table gives the map coordinates and the
shipping loads for a set of cities that we wish to connect through a central hub.
| CITY |
MAP COORDINATE (x, 4 |
SHIPPING LOAD |
| A |
(5, 10) |
5 |
| B |
(6, 8) |
10 |
| C |
(4, 9) |
15 |
| D |
(9, 5) |
5 |
| E |
(7, 9) |
15 |
| F |
(3, 2) |
10 |
| G |
(2, 6) |
5 |
a) Near which map coordinates should the hub be located?
b) If the shipments from city A triple, how does this change the coordinates?