Operation management assignment
1. Identify what factors you should be considered at a government level when deciding on a location for your organization? Explain in details four of these factors? (25 Points)
2. How do you go about deciding on the location for your business? What are the steps to be taken? (10 Points)
3. Using the following factor ratings,
Location Score
Factor (100 Points each)
Weight
A
B
C
Convenience
0.15
86
94
80
Parking Facilities
0.20
90
98
72
Display Area
0.18
85
96
88
Shopper Traffic
0.27
60
80
60
Operating Costs
0.10
92
82
92
Neighborhood
0.10
90
75
90
a. Determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score (20 points)
4. Find out the lowest-cost range for multiple locations. Fixed and variable costs for the four potential plant locations are shown in the table below:
Location
Fixed Cost
Variable Cost
A
$105,000
$12
B
$63,000
$15
C
$130,000
$8
D
$110,000
$7
The actual output of the mentioned locations is 11,000 units per year.
a. Find out the total cost of each location? (20 Point)
b. Plot the total cost lines for these locations on a single graph. (15 Point)
c. Identify the range of output for which each location has the lowest total cost. (5 Point)
d. If expected output at the selected location is to be 5000 units per year, which alternative would provide the lowest total cost? (5 Point)
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