Answer the following problems with showing work.
- Chapter 11 Spreadsheet Problems: 1, 2 (p. 399-400)
- The soft toys company has collected information on fixed and variable costs for four potential plant locations.
|
Location |
Annual Fixed Cost |
Unit Variable Cost |
|
A |
$200,000 |
$50.00 |
|
B |
$300,000 |
$45.00 |
|
C |
$400,000 |
$25.00 |
|
D |
$600,000 |
$20.00 |
A: Plot the total cost curves for the four plant locations on a single graph.
B: Compute the range of demand for which each location has a cost advantage.
C: Which plant location is best if demand is 30,000 units?
- The Bruhaha Brewery is planning to expand internationally. The company has identified six critical location factors and their relative weights. The scores for each of the three potential sites are shown in the following table. Which site should be selected?
|
Critical Location Factors |
Factor Weight (sum to 1) |
Columbus scores (1-100) |
Las Vegas scores (1-100) |
Spokane scores (1-100) |
|
Labor cost |
0.15 |
70 |
90 |
50 |
|
Proximity to market |
0.25 |
100 |
90 |
80 |
|
Supplier base |
0.2 |
80 |
100 |
70 |
|
Quality of life |
0.3 |
90 |
60 |
60 |
|
Taxes |
0.1 |
60 |
80 |
90 |
- Chapter 12 Problems: 1, 3, 5, 7 (p. 441-442)
- For the previous month the Ellram Lounge served 1500 customers with very few complaints. Their labor cost was 3000.00 material cost was 800.00 energy cost was 200.00 and building lease cost was 1500.00. They were open 26 days of the month and the lounge has 20 seats. They are open 6 hrs per day and the average customer stay is 1 hour. A: Calculate the single factor productivities and the overall multiple factor productivity. How could they improve the productivity?B: Calculate the monthly capacity and the capacity utilization
3 For the office layout shown in question number 2, determine the closeness desirability rating using the rating table below. Treat the hallway as if it doesn’t exist, can you find a more desirable layout? How could you use both the total distance traveled and the closeness desirability in assessing the layout alternatives? Can you find a layout resulting in relatively good scores using both types of criteria?
|
1 Management |
|
4 Reception |
|
3 Engineering |
|
2 Production |
|
8 Sales |
|
7 Purchasing |
|
6 Accounting |
|
5 Files |
|
Closeness desirabilities between departments |
|||||||
|
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
|
|
(1) |
2 |
2 |
-1 |
0 |
1 |
3 |
3 |
|
(2) |
3 |
0 |
0 |
0 |
3 |
1 |
|
|
(3) |
0 |
2 |
0 |
2 |
3 |
||
|
(4) |
3 |
1 |
2 |
2 |
|||
|
(5) |
2 |
2 |
1 |
||||
|
(6) |
0 |
2 |
|||||
|
(7) |
1 |
||||||
5. Given the average service rate of twelve customers per hour, what is the probability the business can handle all the customers when the average arrival rate is 10 customers per hour? Use the Poisson distribution to calculate the probabilities for various customer arrivals
7. Stella can handle about ten customers per hour at her one person comic book store. The customer arrival rate averages about 6 customers per hour. Stella is interested in knowing the operating characteristics of her single channel single phase queuing system.
