Solution of Chapter 8 Operations Mangement by Jay Heizer
ChAPTER 8
DISCUSSION QUESTIONS
5. Service location decisions tend to focus on the revenue function, whereas manufacturing/industrial location decisions tend to focus on costs. The service sector uses techniques such as: Correlation analysis Traffic counts Demographic analysis Purchasing power analysis The industrial decision uses: Transportation method Factor-weighting approach Break-even analysis Crossover charts 8. Factors to consider when choosing a country: Exchange rates Government stability Communications systems within the country and to the home office Wage rates Productivity Transportation costs Language Tariffs Taxes Attitude towards foreign investors/incentives Legal system Ethical standards Cultural issues Supplies availability Market locations 9. Factors to consider in a region/community decision: Corporate desires Attractiveness of region Labor issue Utilities Environmental regulations Incentives Proximity to raw materials/customers Land/construction costs 10. Site location factors: Size and cost Transportation systems Zoning Proximity of services/supplies needed Environmental impact
END-OF-CHAPTER PROBLEMS
8.1 (a) Six laborers each making $3 per day can produce 40 units.
(b) Eight laborers each making $2.50 per day, can produce 45 units.
(c) Two laborers, each making $64 per day, can make 100 units.
China is most economical, assuming transportation costs are not included. 8.2 Malaysia China Montana China is most favorable.
8.6 Atlanta Charlotte Charlotte is better.
8.7 | | Suburb B has the highest rating, but weights should be examined using sensitivity analysis, as the final ratings are all close.
8.8 | | Location | | | Present Location | Newbury | Hyde Park | | Factor | | Wgt | | | Wgt | | | Wgt | | | 1 | 40 | 0.30 | 12 |
DISCUSSION QUESTIONS
5. Service location decisions tend to focus on the revenue function, whereas manufacturing/industrial location decisions tend to focus on costs. The service sector uses techniques such as: Correlation analysis Traffic counts Demographic analysis Purchasing power analysis The industrial decision uses: Transportation method Factor-weighting approach Break-even analysis Crossover charts 8. Factors to consider when choosing a country: Exchange rates Government stability Communications systems within the country and to the home office Wage rates Productivity Transportation costs Language Tariffs Taxes Attitude towards foreign investors/incentives Legal system Ethical standards Cultural issues Supplies availability Market locations 9. Factors to consider in a region/community decision: Corporate desires Attractiveness of region Labor issue Utilities Environmental regulations Incentives Proximity to raw materials/customers Land/construction costs 10. Site location factors: Size and cost Transportation systems Zoning Proximity of services/supplies needed Environmental impact
END-OF-CHAPTER PROBLEMS
8.1 (a) Six laborers each making $3 per day can produce 40 units.
(b) Eight laborers each making $2.50 per day, can produce 45 units.
(c) Two laborers, each making $64 per day, can make 100 units.
China is most economical, assuming transportation costs are not included. 8.2 Malaysia China Montana China is most favorable.
8.6 Atlanta Charlotte Charlotte is better.
8.7 | | Suburb B has the highest rating, but weights should be examined using sensitivity analysis, as the final ratings are all close.
8.8 | | Location | | | Present Location | Newbury | Hyde Park | | Factor | | Wgt | | | Wgt | | | Wgt | | | 1 | 40 | 0.30 | 12 |