Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) demand =6000 Coordinate (40,20) demand =8000 Coordinate

A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) I. II. III.   Location A has an initial investment of $3,000,000 but the production variable cost of $60 per IV. If they plan to produce 150,000 units which location is the best in terms of cost? 

A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) demand =6000 Coordinate (40,20) demand =8000 Coordinate (80,30) demand =9000 Coordinate (70,25) demand =5000 What location would you recommend for opening a distribution center for these stores using COG method? b) A company is considering three city locations to set-up a plant. TOLLO I. II. III. Location A has an initial investment of $3,000,000 but the production variable cost of $60 per unit. Location B has an initial investment of $4,000,000 and a variable cost of $45 per unit. Location C has an initial investment of $6,000,000 and a variable cost of $25 per unit. The management would like to know over what range of production volume each location is cost-effective. Plot the total cost lines with free hand. They would also like to know when to shift from one location to another if the demand keeps on growing. IV. If they plan to produce 150,000 units which location is the best in terms of cost?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine the best location for opening a distribution center using the Center of Gravity COG met... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Principles, Problems and Policies

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

20th edition

978-0077660819, 77660811, 978-1259450242

More Books

Students also viewed these General Management questions