Exam 11: Supply Chain Location Decisions

Chapter 11 presents a number of models for location analysis for a single site and two alternatives for locating multiple facilities.Which of these models are most adaptable to the other purpose,that is,is which single site location model is best suited to a multiple location puzzle and vice-versa? Why? Discuss possible crossover models.

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.What are the x and y coordinates for the center of gravity?

Kiddie Clothes wishes to locate its warehouse so that it would serve its four different stores,described as follows.Based on the center of gravity,what are the x and y coordinates of the proposed warehouse location?

Table 11.11 The Neale Company has four distribution centers (A,B,C,and D)that require monthly shipments of 30,000,24,000,36,000,and 24,000 gallons of diesel fuel per month,respectively.Three wholesalers (1,2,and 3)are willing to supply up to 36,000,48,000 and 30,000 gallons,respectively.Total costs (in $)for both shipping and price per gallon follow.A transportation method tableau is provided below. -Use the information in Table 11.11.What can be said about a plan that ships 30,000 gallons from 1 to A;6,000 gallons from 1 to C;24,000 gallons from 2 to B;24,000 gallons from 2 to D;and 30,000 gallons from 3 to C?

The point has been reached where a biotechnology research and development company must expand by building a new facility.The search has been narrowed to four locations,all of which are acceptable to management.The assessment of these sites is being made on the basis of the six subjective location factors that follow.Management has agreed to use a five-point scale (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1)to quantify and compare their subjective opinions about the relative goodness of the sites.The weight reflects the importance of each factor in the decision. Calculate the weighted score for each alternative.Which location would you recommend?

Each cell in the interior of a transportation tableau not in the requirements row or capacity column is a(n)________.

The operations manager has narrowed down the search for a new plant to three locations.Fixed and variable costs follow. Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. a.What is the break-even quantity between A and B? b.What is the break-even quantity between B and C?

The transportation method of production planning is a special case of:

Table 11.9 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 250,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. -Use the information in Table 11.9.What is the cost of a plan that ships 150 units from 1 to C,150 units from 1 to D,250 units from 2 to A,150 units from 2 to C,200 units from 3 to B,and 50 units from 3 to D?

The transportation method provides optimal solutions for minimization of shipping costs in multiple facility location problems.

What are the trade-offs among on-site expansion,new location,and relocation?

Pinkerton Company has four distribution centers located at the location coordinates given.The monthly demand at each center is also given. Assume that management is considering locating its new plant at distribution center A.What is the load-distance score,assuming 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 overtime cost in dollars per unit?

Which of the following is an example of an organization using the Geographical Information System (GIS)method for locating multiple facilities?

Widgets,Inc.wishes to locate two new manufacturing facilities.Based on the following subjective criteria,where should the new facilities be located? (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1)

Which of these is NOT identified as a component of a geographical information system?

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.What are the x and y coordinates for the center of gravity?

Table 11.1 Four departments are located in adjacent bays in the same loading dock.The distance between adjacent bays is 30 feet,the distance between bays separated by another (Alpha and Charlie,Bravo and Delta)is 60 feet,and the distance between Alpha and Delta is 90 feet.Material flows (loads)between departments are shown in the Table below. -Use the information from Table 11.1.Calculate the load distance for location Bravo.

Table 11.6 Union Fork,Inc.has five distribution centers located at the location coordinates given as follows.The demand at each center is also given. -Use the information in Table 11.6.If a plant is located at a center of gravity,what is the load-distance score,assuming rectilinear distance?

A favorable labor climate might include all of the following EXCEPT: