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ESLSCA University Cook Door's Location Analysis The management of Cook Door is considering three different locations Heliopolis, Zayed and 5th Settlement for its new
ESLSCA University Cook Door's Location Analysis The management of Cook Door is considering three different locations Heliopolis, Zayed and 5th Settlement for its new store. The management team has identified the five factors listed in the following table as the basis for evaluation, and has assigned weights as shown in the same table. The operations manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown in the right-hand table. COOK DOOR Factor Factor Description Weight Heliopolis Zayed 5th Settlement 1 Cost of Labors 0.18 75 70 60 2 Traffic per square meter 0.25 80 60 70 3 Proximity to public transportation 0.12 80 45 50 4 Availability of target segment 0.15 80 65 72 5 Rental Cost 0.30 40 95 70 As an operations manager, Cook Door's management has asked you to use the previous information to: a. Calculate the weighted score for each alternative location. (2 Marks) b. Identify the other factors that your company may wish to include in their decision while using this factor rating approach. (1 Mark) c. If the management team weighted the factors equally, how would the locations stack up in terms of their composite factor rating scores? (2 Marks) d. If Rental costs and Traffic per square meter are given weights that are double the weights of the other factors, how would the locations stack up? (2 Marks) At present, Cook Door has five stores in Great Cairo, each of which is serviced once a week; expired raw materials are collected and fresh products are displayed on these five branches. Here are the x and y coordinates of the locations of these five branches and the number of truckloads of raw material that go to each destination. Cook Door operates out of a single warehouse, whose coordinates are also included. Cook Door has outgrown the warehouse, and the partners are discussing whether to expand the present facilities or construct a larger warehouse at a new site. Customer Weekly Loads X Y A 2 3 B 5 2 1 3 3 6 2 D 10 4 6 E 6 3 5 2 4 Warehouse As an operations manager, the Cook Door management has asked you to use the previous information to: Discuss whether to expand the present facilities or to construct a larger warehouse at a new site. (3 Marks) In addition, Cook Door's Management is considering three sites - Obour, 10th of Ramadan, and 6th October cities - at which to locate a factory to build its new raw material and food concentrates products. The goal is to locate at a minimum cost site, where cost is measured by the annual fixed plus variable costs of production. Cook Door has gathered the following data: Site Obour Annual Fixed Cost L.E 10,000,000 10th of Ramadan October L.E. 20,000,000 L.E. 25,000,000 Variable cost per ton of raw material L.E. 2,500 L.E. 2,000 L.E. 1,000 The firm forecast that it will be in need for producing 60,000 tons of raw material at the new plant each year, but thus far, that the extent of its knowledge about production plans. Required: a. For what values of volume, V of production, if any, is October's site a recommended site? b. What volume indicated Obour's site is optimal? (2 Marks) (2 Marks)
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