Plant B, because it has the lower variable cost per unit Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units Plant A, because it is cheaper than Fant B for all volumes over 8,000,000 units Plant A, because it is cheaper than Plant B for all volumes
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- Question 1. Identify the range of output for which each alternative is superior(has the lowest cost) 2. If the expected output at the selected location is to be 10000 units per year, which location would provide the lowest total cost? Location Fixed Cost Variable cost A $250,000 $11 B $100,000 $30 C $150,000 $20 D $200,000 $35Questions i. Calculate the weighted score for each alternative location. ii. Which location should be chosen?Question 1 low-cost range for multiple alternatives. variable location fixed cost cost/unit elm 125 .01 ferry 50 .03 getty 75 .02 if expected output is 4000, the best alternative is location_
- Profit analysis. A manufacturer of staplers is about to lose its lease, so it must move to another location. Two sites are currently under consideration. Fixed costs would be $8,000 per month at site A and $9,400 per month at site B. Variable costs are expected to be $5 per unit at site A and $4 per unit at site B. Monthly demand has been steady at 8,800 units for the last several years and is not expected to deviate from that amount in the foreseeable future. Assume staplers sell for $6 per unit. Determine which location would yield the higher profit under these conditions.Problem 03 Complying with all, government housing regulations and requirements, the employees union of a certain firm has the option to purchase either of two sites, each having an area of 18 hectares (180,000 sq.m.) of undeveloped land. The first singly owned, would cost Php20.00 a sq.m, but would needa roadway system, including the access road, 4,000 meters long, at a cost of Php 110.00 per meter. Additional development expenses would be Php 60,000 to subdivide and grade into 320 house löts, and another Php 32,000 for a hollow block fence and security gates. The second site consists of three lots, separately owned, with a total area of 18 hectares: 7 hectares at Php 25.00 a sq.m. 5 hectares at Php 21.00 a sq.m and 6 hectares at Php 14.00 a sq.m. The road system for this would be only 3,200 meters long at Php 100.00 per meter, but needs two box culverts each costing Php 25.000.00. Lot grading would be Php 35,000; fencing and security 8atës Phip 24,000. Assuming that all…Theory of Constraints for a Restaurant Taylor’s is a popular restaurant that offers customers alarge dining room and comfortable bar area. Taylor Henry, the owner and manager of the restaurant,has seen the number of patrons increase steadily over the last two years and is considering whetherand when she will have to expand its available capacity. The restaurant occupies a large home, andall the space in the building is now used for dining, the bar, and kitchen, but space is available on theproperty to expand the restaurant. The restaurant is open from 6 p.m. to 10 p.m. each night (exceptMonday) and, on average, has 24 customers enter the bar and 50 enter the dining room during each ofthose hours. Taylor has noticed the trends over the last 2 years and expects that within about 4 years,the number of bar customers will increase by 50% and the dining customers will increase by 20%.Taylor is worried that the restaurant will be not be able to handle the increase and has asked you tostudy…
- Problem 3: Regional Office Coordiantes (x,y) N Tampa Post Office must be relocated by other in a new location, much bigger and modern, to be able to absorb the huge mail flow. Ybor City -10,5 3 Davis Island -3,8 Dale-Mabry Given received and delivered mailing, is transported from regional offices to the central office, the new location can produce significant differences about the deliverance efficiency, as in terms of cost as time. Using the data represented in the attached table, calculate the location for the new facilities as the center of -4,7 Palma Cela -15,1 Bayshore -13,3 Temple Terrace -1,12 Hyde Park N = Number of delivery trucks per day -5,5 10 gravity.Question 1 A firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location. Use algebra to determine the crossover points.The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 350x1 + 425x2 + 425x3+ 465x4 + 485x5 + 365x6 s.t. x1 + x2 + x5 + X6 2 1 (Residence Hall A constraint) x1 + x2 + X3 2 1 {Residence Hall B constraint) X4 + X5 + X6 2 1(Science building constraint) X1 + X4 + X5 2 1{Music building constraint} x2 + x3 + X4 2 1{Math building constraint} x3 + X4 + X5 2 1{Business building constraint} x2 + x5 + X6 2 1{Auditorium…
- Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 2 4 6 8 10 14 16 18 20 Q (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.Briefly explain what is location service facilities?Q 3 locations have been identified as suitable options for building a new factory. The fixed and variable costs for each of the 3 potential locations has been estimated. Identify the best location when a) Demand estimate is 2000 units b) Demand estimate is 3500 units and c) Identify point of indifference between B and C (Rupees) (Rupees) Location Annual Fixed Cost Unit Variable Cost A 5,00,000 300 B 7,50,000 200 C 9,00,000 100