Chapter 8 Location Strategies

CHAPTER8: LOCATI ONSTRATEGI ES TRUE/ FALSE 1. FedExchoseMemphi s, Tennessee, f ori t scent r al l ocat i on, or" hub, "pr i mar i l ybecauseof t hei ncent i v esof f er edbyt heci t yofMemphi sandt hest at eofTennessee. Fal se( Gl obal companypr of i l e, easy ) 2. Gener al l y , t heobj ect i v eoft hel ocat i ondeci si oni st omaxi mi zet hef i r m' spr of i t . Fal se( Thest r at egi ci mpor t anceofl ocat i on, easy ) 3. Whensel ect i ngal ocat i on, ser v i ceor gani zat i onst y pi cal l yf ocusonmaxi mi zi ngr ev enue, butmi ni mi zi ngt r anspor t at i oncost si sal sof r equent l yanobj ect i v e. Fal se( Thest r at egi ci mpor t anceofl ocat i on, easy ) 4. Wheni nnov at i onr epl acescostasaf i r m' sf ocusf orl ocat i ondeci si ons, t hepr esenceof ot herst at eof t hear tf i r msi sapl us, notanegat i v e, f ort hef i r m' scompet i t i v eness. Tr ue( t hest r at egi ci mpor t anceofl ocat i on, moder at e) 5. Ther at i oofl aborcostperdayt opr oduct i v i t y , i nuni t sperday , i st hel aborcostperuni t . Tr ue( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 6. Foral ocat i ondeci si on, l aborpr oduct i v i t ymaybei mpor t anti ni sol at i on, butl owwage r at esar eamor ei mpor t antcr i t er i on. Fal se( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 7. Unf av or abl eexchanger at escanof f setot hersav i ngsi nal ocat i ondeci si on. Tr ue( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 8. Anexampl eofani nt angi bl ecost , asi tr el at est ol ocat i ondeci si ons, i st hequal i t yof educat i on.Tr ue( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 9. I nl ocat i ondeci si ons, i nt angi bl ecost sar eeasi ert omeasur et hant angi bl ecost s. Fal se( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 10. Locat i ondeci si onsar ebasedonmanyt hi ngs, i ncl udi ngcost s, r ev enues, i ncent i v es, at t i t udes, andi nt angi bl es, butnotonet hi cal consi der at i ons. Fal se( Fact or st hati nf l uencel ocat i ondeci si ons, easy ) 11. Manuf act ur er smaywantt ol ocat ecl oset ot hei rcust omer s, i ft het r anspor t at i onof f i ni shedgoodsi sexpensi v eordi f f i cul t . Tr ue( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 12. Oner easonf oraf i r ml ocat i ngneari t scompet i t or si st hepr esenceofamaj orr esour cei t needs. Tr ue( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 13. Thegr aphi cappr oacht ol ocat i onbr eakev enanal y si sdi spl ay st her angeofv ol umeov er whi cheachl ocat i oni spr ef er abl e. CLXXX Tr ue( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 14. Thef act or r at i ngmet hodcanconsi derbot ht angi bl eandi nt angi bl ecost s. Tr ue( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 15. Thecent er of gr av i t ymet hodf i ndst hel ocat i onofacent r al i zedf aci l i t y , suchasa di st r i but i oncent er , t hatwi l l max i mi zet heor gani zat i on' sr ev enue. Fal se( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 16. Thet r anspor t at i onmodel cal cul at esanopt i mal shi ppi ngsy st em bet weenacent r al f aci l i t y andsev er al out l y i ngcust omer s. Fal se( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 17. Ser v i cef i r mschoosel ocat i onsbased, i npar t , ont her ev enuepot ent i al ofasi t e. Tr ue( Ser v i cel ocat i onst r at egy , moder at e) 18. St ar bucksCof f ee' sappr oacht ochoosi ngnewcaf él ocat i onsi sl ar gel ybasedonexecut i v e i nt ui t i on, notsophi st i cat edmodel sandsi t esel ect i ont echnol ogy . Fal se( Ser v i cel ocat i onst r at egy , easy ) 19. Laborcostandl aborav ai l abi l i t yof t endr i v et hel ocat i ondeci si oni nt het el emar ket i ng i ndust r y . Tr ue( Ser v i cel ocat i onst r at egy , moder at e) 20. Thel ocat i ondeci si onsofgoodspr oduci ngf i r mswi l l gener al l ypaymor eat t ent i ont o par ki ng, access, andt r af f i ccount st hanwi l l ser v i cel ocat i ondeci si ons. Fal se( Ser v i cel ocat i onst r at egy , moder at e) 21. I ndust r i al l ocat i ondeci si onsof t enassumet hatcost sar er el at i v el yconst antf oragi v en ar ea. Fal se( Ser v i cel ocat i onst r at egy , moder at e) 22. St ar bucksCof f ee' suseofgeocodeddemogr aphi candconsumerdat ai nsi t esel ect i on deci si onsi sanexampl eoft heuseofaGeogr aphi cI nf or mat i onSy st em, orGI S. Tr ue( Ser v i cel ocat i onst r at egy , moder at e) MULTI PLECHOI CE 23. FedExchoseMemphi s, Tennessee, asi t sU. S.hubbecause a.t heci t yi si nt hecent eroft heU. S. , geogr aphi cal l y b.t heai r por thasr el at i v el yf ewhour sofbadweat hercl osur es c. i tneededameanst or eachci t i est owhi chi tdi dnothav edi r ectf l i ght s d.t hef i r m bel i ev edt hatahubsy st em wassuper i ort ot r adi t i onal ci t y t oci t yf l i ght schedul i ng e. Al l oft heabov ear et r ue. e( Gl obal companypr of i l e, easy ) 24. Whi choft hef ol l owi ngst at ement sr egar di ngFedExi st r ue? a.I t shubi nMemphi s, Tennessee, wassel ect edbecauseofi t sl owcost . b.Memphi s, Tennessee, i st heonl yhubi nt hecompany ' sgl obal f l i ghtnet wor k. CLXXXI c. FedExbel i ev est hehubsy st em hel psr educemi shandl i nganddel ay sduet obet t er cont r ol s. d.FedExusesahubsy st em i nt heU. S. , butaci t y t oci t ynet wor ki not hercount r i es. e. Memphi si sFedEx' sonl yhubai r por ti nt heUni t edSt at es. c( Gl obal companypr of i l e, easy ) 25. I ndust r i al l ocat i onanal y si st y pi cal l yat t empt st o a.r educecost s b.maxi mi zesal es c. f ocusmor eonhumanr esour ces d.beenv i r onment al l yf r i endl y e. noneoft heabov e a( St r at egi ci mpor t anceofl ocat i on, easy ) 26. Ser v i cel ocat i ondeci si onst y pi cal l yat t emptt o a.mi ni mi zecost s b.consi dergl obal i mpl i cat i ons c. decr easel aborcost s d.beenv i r onment al l yf r i endl y e. noneoft heabov e e( St r at egi ci mpor t anceofl ocat i on, easy ) 27. Al ocat i ondeci si onf oranappl i ancemanuf act ur erwoul dt endt ohav ea( n) a.costf ocus b.l aborf ocus c. r ev enuef ocus d.env i r onment al f ocus e. educat i onf ocus a( St r at egi ci mpor t anceofl ocat i on, moder at e) 28. Al ocat i ondeci si onf orat r adi t i onal depar t mentst or e( Macy ' s)woul dt endt ohav ea( n) a.costf ocus b.l aborf ocus c. r ev enuef ocus d.env i r onment al f ocus e. educat i onf ocus c( St r at egi ci mpor t anceofl ocat i on, moder at e) 29. Gl obal i zat i onoft hel ocat i ondeci si oni st her esul tofal l oft hef ol l owi ngexcept a.mar keteconomi cs b.hi gherqual i t yofl aborov er seas c. easeofcapi t al f l owbet weencount r i es d.hi ghdi f f er encesi nl aborcost s e. mor er api d, r el i abl et r av el andshi ppi ng b( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 30. I nl ocat i onpl anni ng, env i r onment al r egul at i ons, costandav ai l abi l i t yofut i l i t i es, andt axes ar e a.gl obal f act or s b.count r yf act or s CLXXXI I c. r egi onal / communi t yf act or s d.si t er el at edf act or s e. noneoft heabov e c( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 31. Amanuf act ur i ngf i r mf i ndsal ocat i ont hathasasi gni f i cantcostadv ant ageov er al t er nat i v es, butr ej ect st hatl ocat i onbecauset heeducat i onal i nf r ast r uct ur ewas i nsuf f i ci entt ot r ai nt hef i r m' swor ker si ni t sspeci al pr oduct i ont echnol ogi es.Thef i r m' s act i oni l l ust r at est hel i nkbet ween_ _ _ _ _ _ _ _ _ _andl ocat i on. a.i nnov at i on b.cl ust er i ng c. t axi ncent i v es d.gl obal i zat i on e. pr oxi mi t y a( Thest r at egi ci mpor t anceofl ocat i on, easy ) 32. Whi choft hef ol l owi ngi susual l ynotoneoft het opconsi der at i onsi nchoosi ngacount r y f oraf aci l i t yl ocat i on? a.av ai l abi l i t yofl aborandl aborpr oduct i v i t y b.exchanger at es c. at t i t udeofgov er nment al uni t s d.z oni ngr egul at i ons e. l ocat i onofmar ket s d( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 33. Whenmaki ngal ocat i ondeci si onatt hecount r yl ev el , whi choft hesewoul dbeconsi der ed? a.cor por at edesi r es b.l and/ const r uct i oncost s c. ai r , r ai l , hi ghway , wat er waysy st ems d.z oni ngr est r i ct i ons e. l ocat i onofmar ket s e( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 34. Whi choft hesef act or swoul dbeconsi der edwhenmaki ngal ocat i ondeci si onatt he r egi on/ communi t yl ev el ? a.gov er nmentr ul es, at t i t udes, st abi l i t y , i ncent i v es b.cul t ur al andeconomi ci ssues c. z oni ngr est r i ct i ons d.env i r onment al i mpacti ssues e. pr oxi mi t yt or awmat er i al sandcust omer s e( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 35. Whenmaki ngal ocat i ondeci si onatt her egi on/ communi t yl ev el , whi choft hesewoul dbe consi der ed? a.gov er nmentr ul es, at t i t udes, st abi l i t y , i ncent i v es b.cul t ur al andeconomi ci ssues c. costandav ai l abi l i t yofut i l i t i es d.z oni ngr est r i ct i ons e. ai r , r ai l , hi ghway , wat er waysy st ems CLXXXI I I c( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 36. Whi choft hesef act or swoul dbeconsi der edwhenmaki ngal ocat i ondeci si onatt hesi t e l ev el ? a.gov er nmentr ul es, at t i t udes, st abi l i t y , i ncent i v es b.cul t ur al andeconomi ci ssues c. z oni ngr egul at i ons d.costandav ai l abi l i t yofut i l i t i es e. pr oxi mi t yt or awmat er i al sandcust omer s c( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 37. Tangi bl ecost si ncl udewhi choft hef ol l owi ng? a.cl i mat i ccondi t i ons b.av ai l abi l i t yofpubl i ct r anspor t at i on c. t axes d.qual i t yandat t i t udeofpr ospect i v eempl oy ees e. z oni ngr egul at i ons c( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 38. I nt angi bl ecost si ncl udewhi choft hef ol l owi ng? a.qual i t yofpr ospect i v eempl oy ees b.qual i t yofeducat i on c. av ai l abi l i t yofpubl i ct r anspor t at i on d.al l oft heabov e e. noneoft heabov e d( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 39. Oper at i onsmanager swi l l needt oconsi deret hi cal andsoci al r esponsi bi l i t yi ssueswhen l ocat i ondeci si onsi nv ol v e a.chi l dl abori ssues b.sweat shopcondi t i ons c. al l egi ancet ot hef i r m' scur r entl ocat i on d.cor r upt i on e. al l oft heabov e e( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 40. Af i r mi sseeki nganewf act or yl ocat i on, andi sconsi der i ngsev er al count r i eswor l dwi de. I nsomeoft hesecount r i es, chi l dl abori spr ev al ent ; i not her s, wor ki ngcondi t i onsand wor kersaf et yar ei nf er i ort ocondi t i onsi nt heU. S.Anoper at i onsmanagerpay i ngat t ent i on t o_ _ _ _ _ _ _ _ _ _ wi l l f act ort hesei ssuesi nt ot hel ocat i ondeci si on. a.et hi cal andsoci al r esponsi bi l i t yi ssues b.cr i t i cal successf act or s c. f act orr at i ngsy st ems d.geogr aphi ci nf or mat i onsy st ems e. r egr essi onmodel s a( Fact or st hati nf l uencel ocat i ondeci si ons, easy ) CLXXXI V 41. Whi choft hef ol l owi ngst at ement sr egar di ng" pr oxi mi t y "i nt hel ocat i ondeci si oni sf al se? a.Ser v i ceor gani zat i onsf i ndt hatpr oxi mi t yt omar keti st hemostcr i t i cal pr i mar yl ocat i on f act or . b.Manuf act ur er swantt obenearcust omer swhent hei rpr oducti sbul ky , heav y , orf r agi l e. c. Per i shabi l i t yofr awmat er i al si sagoodr easonf ormanuf act ur er st ol ocat eneart he suppl i er , nott hecust omer . d.Reduct i oni nbul ki sagoodr easonf oramanuf act ur ert ol ocat eneart hesuppl i er . e. Cl ust er i ngamongf astf oodchai nsoccur sbecauset heyneedt obeneart hei rl abor suppl y . e( Sect i on, easy ) 42. Whi choft hef ol l owi ngi st hebestexampl eoft hepr oxi mi t yr ul et hat , f orser v i cef i r ms, pr oxi mi t yt omar keti st hemosti mpor t antl ocat i onf act or ? a.Sof tdr i nksar ebot t l edi nmanyl ocal pl ant s, wher ecar bonat edwat eri saddedt o pr opr i et ar ysy r upst hatmayhav ebeenshi ppedl ongdi st ances. b.Fewpeopl ewi l l t r av el out ofst at ef orahai r cut . c. Pat i ent swi l l t r av el v er yl ongdi st ancest ohav et hei rher ni asur ger i esper f or medat Shoul di ce Hospi t al . d.Fur ni t ur emaker schooset ol ocat eneart hesour ceofgoodhar dwoods, ev ent houghi t meansl ocat i ngnearot herf ur ni t ur emanuf act ur er s. e. Met al r ef i ner s( smel t er s)l ocat enearmi nest oaccompl i shsi gni f i cantwei ghtr educt i on neart hemet al ' ssour ce. b( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 43. Whi choft hef ol l owi ngi st hebestexampl eofcl ust er i ng? a.Fur ni t ur emanuf act ur er sl ocat ei nsmal l t ownsal l acr osst heUni t edSt at es, wher ev er ol dt i mecr af t smanshi psur v i v es. b.Manycompani esar ei ncor por at edi nDel awar ebecauseoff av or abl et axl aws. c. Fastf oodr est aur ant schooset hei rl ocat i onsbasedonl owcostl aborandt r af f i c count s. d.Sof t war ef i r msl ocat ei nSi l i conVal l eybecauseoft heabundanceofsci ent i f i cand t echni cal col l egegr aduat es. e. Sugarmi l l sar el ocat edt obecent r al t oagr oupofsugarcanef ar ms. d( Fact or st hataf f ectl ocat i ondeci si ons, easy ) 44. Communi t yat t i t udes, zoni ngr est r i ct i ons, andqual i t yofl aborf or cear el i kel yt obe consi der edi nwhi choft hef ol l owi ngl ocat i ondeci si onmet hods? a.t r anspor t at i onmet hod b.l ocat i onal br eakev enanal y si s c. cent er of gr av i t ymet hod d.si mul at i on e. f act orr at i ngmet hod e( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 45. Whi choft hef ol l owi ngmet hodsbestconsi der si nt angi bl ecost sr el at edt oal ocat i on deci si on? a.cr ossov ermet hods b.l ocat i onal br eakev enanal y si s CLXXXV c. f act orr at i nganal y si s d.t het r anspor t at i onmet hod e. t heassi gnmentmet hod c( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 46. Ev al uat i ngl ocat i onal t er nat i v esbycompar i ngt hei rcomposi t e( wei ght edav er age)scor es i nv ol v es a.f act orr at i nganal y si s b.cost v ol umeanal y si s c. t r anspor t at i onmodel anal y si s d.l i nearr egr essi onanal y si s e. cr ossov eranal y si s a( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 47. Acl ot hi ngchai ni sconsi der i ngt wodi f f er entl ocat i onsf oranewr et ai l out l et .Theyhav e i dent i f i edt hef ourf act or sl i st edi nt hef ol l owi ngt abl east hebasi sf orev al uat i on, andhav e assi gnedwei ght sasshownont hel ef t .Themanagerhasr at edeachl ocat i ononeach f act or , ona100poi ntbasi s, asshownont her i ght . Fact or 1 2 3 4 Fact orDescr i pt i on Av er agecommuni t yi ncome Communi t ygr owt hpot ent i al Av ai l abi l i t yofpubl i c t r anspor t at i on Laborcost Wei ght . 40 . 25 . 15 . 20 Bar cl ay Chest er 30 20 40 30 20 20 10 30 Whati st hescor ef orChest er ? a.10. 00 b.24. 50 c. 25. 75 d.27. 00 e. 100. 00 b( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 48. Anappr oacht ol ocat i onanal y si st hati ncl udesbot hqual i t at i v eandquant i t at i v e consi der at i onsi s a.l ocat i onal cost v ol ume b.f act orr at i ng c. t r anspor t at i onmodel d.assi gnmentmet hod e. makeorbuyanal y si s b( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 49. Ont hecr ossov erchar twher et hecost soft woormor el ocat i onal t er nat i v eshav ebeen pl ot t ed, t hequant i t yatwhi cht wocostcur v escr ossi st hequant i t yatwhi ch a.f i x edcost sar eequal f ort woal t er nat i v el ocat i ons b.v ar i abl ecost sar eequal f ort woal t er nat i v el ocat i ons c. t ot al cost sar eequal f oral l al t er nat i v el ocat i ons d.f i x edcost sequal v ar i abl ecost sf oronel ocat i on CLXXXVI e. t ot al cost sar eequal f ort woal t er nat i v el ocat i ons e( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 50. Af ul l ser v i cer est aur anti sconsi der i ngopeni nganewf aci l i t yi naspeci f i cci t y .Thet abl e bel owshowsi t sr at i ngsoff ourf act or sateachoft wopot ent i al si t es. Fact or Af f l uenceofl ocal popul at i on Tr af f i cf l ow Par ki ngav ai l abi l i t y Gr owt hpot ent i al Wei ght . 20 . 40 . 20 . 20 Gar yMal l Bel tLi ne 30 30 50 30 10 20 40 30 Thescor ef orGar yMal l i s_ _ _ _ _andt hescor ef orBel tLi nei s_ _ _ _ _ _ . a.120; 120 b.22; 24 c. 18; 120 d.34; 28 e. noneoft heabov e d( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 51. Af i r mi sconsi der i ngt wol ocat i onal t er nat i v es.Atl ocat i onA, f i xedcost swoul dbe $4, 000, 000pery ear , andv ar i abl ecost s0. 30peruni t .Atal t er nat i v eB, f i xedcost swoul dbe $3, 600, 000pery ear , wi t hv ar i abl ecost sof$0. 35peruni t .I fdemandi sexpect edt obe10 mi l l i onuni t s, whi chpl antof f er st hel owestt ot al cost ? a.Pl antA, becausei ti scheapert hanPl antBf oral l v ol umesunder8, 000, 000uni t s b.Pl antB, becausei ti scheapert hanPl antAf oral l v ol umesov er8, 000, 000uni t s c. Pl antA, becausei ti scheapert hanPl antBf oral l v ol umes d.Pl antB, becausei thast hel owerv ar i abl ecostperuni t e. nei t herPl antAnorPl antB, becauset hecr ossov erpoi nti sat10mi l l i onuni t s b( Met hodsofev al uat i ngl ocat i onal t er nat i v es, easy ) 52. Thecent er of gr av i t ymet hoddoesnott akei nt oconsi der at i ont he a.l ocat i onofmar ket s b.v ol umeofgoodsshi ppedt ot hemar ket s c. v al ueoft hegoodsshi pped d.combi nat i onofv ol umeanddi st ance e. cent er of gr av i t ymet hodconsi der snoneoft heabov e c( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 53. Thecent er of gr av i t ymet hodi susedpr i mar i l yt odet er mi newhatt y peofl ocat i ons? a.ser v i cel ocat i ons b.manuf act ur i ngl ocat i ons c. di st r i but i oncent erl ocat i ons d.suppl i erl ocat i ons e. t el emar ket i ngl ocat i ons c( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CLXXXVI I 54. Ar egi onal bookst or echai ni saboutt obui l dadi st r i but i oncent ert hati scent r al l yl ocat ed f ori t sei ghtr et ai l out l et s.I twi l l mostl i kel yempl oywhi choft hef ol l owi ngt ool sofanal y si s? a.assembl yl i nebal anci ng b.l oaddi st anceanal y si s c. cent er of gr av i t ymodel d.l i nearpr ogr ammi ng e. al l oft heabov e c( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 55. EastTexasSeasoni ngsi spr epar i ngt obui l donepr ocessi ngcent ert oser v ei t sf our sour cesofseasoni ngs.Thef oursour cel ocat i onsar eatcoor di nat esshownbel ow.Al so, t hev ol umef r om eachsour cei spr ov i ded.Whati st hecent erofgr av i t y ? Xcoor di nat e Ycoor di nat e At hens, Texas 30 30 Beaumont , Texas 20 10 Car t hage, Texas 10 70 Dent on, Texas 50 50 Vol ume 150 350 100 200 a.X=28. 125; Y=31. 25 b.X=22000; Y=24000 c. X=27. 5; Y=40 d.cent erofgr av i t y=28 e. noneoft heabov e a( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 56. Acount ywant st obui l donecent r al l y l ocat edpr ocessi ngf aci l i t yt oser v et hecount y ' sf our r ecy cl i ngdr opof fl ocat i ons.Thef ourdr opof f shav echar act er i st i csasgi v eni nt het abl e bel ow.Whati st heappr oxi mat ecent erofgr av i t yoft hesef ourl ocat i ons? Locat i on Dr opof fpoi ntA Dr opof fpoi ntB Dr opof fpoi ntC Dr opof fpoi ntD Xcoor di nat e 1 6 6 4 Ycoor di nat e 8 7 2 7 a.4. 75, 6. 04 b.17, 24 c. 33. 5, 135. 4 d.6, 4. 25 e. 570, 725 a( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CLXXXVI I I Tonnage 10 35 25 50 57. Pr oduct i onand/ orshi ppi ngcost sar eal way sconsi der edi nwhi choft hef ol l owi ngl ocat i on deci si onmet hods? a.f act orr at i ngmet hod b.t r anspor t at i onmet hod c. l ocat i onal br eakev enanal y si s d.cent er of gr av i t ymet hod e. cr ossov eranal y si s b( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 58. Thet r anspor t at i onmet hod, whenappl i edt ol ocat i onanal y si s a.mi ni mi zest ot al f i xedcost s b.mi ni mi zest ot al pr oduct i onandt r anspor t at i oncost s c. mi ni mi zest ot al t r anspor t at i oncost s d.maxi mi zesr ev enues e. mi ni mi zest hemov ementofgoods b( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 59. Whi choft hef ol l owi ngi snotamongt heei ghtcomponent sofr ev enueandv ol umef ora ser v i cef i r m? a.qual i t yoft hemanagement b.shi pmentcostoff i ni shedgoods c. pur chasi ngpoweroft hecust omer dr awi ngar ea d.uni quenessoft hef i r m' sandt hecompet i t or ' sl ocat i ons e. compet i t i oni nt hear ea b( Ser v i cel ocat i onst r at egy , moder at e) 60. Whi choft hef ol l owi ngi samongt heei ghtcomponent sofr ev enueandv ol umef ora ser v i cef i r m? a.uni quenessoft hef i r m' sandt hecompet i t or ' sl ocat i ons b.qual i t yoft hecompet i t i on c. qual i t yofmanagement d.pur chasi ngpoweroft hecust omer dr awi ngar ea e. al l oft heabov e e( Ser v i cel ocat i onst r at egy , moder at e) 61. Tr af f i ccount sandpur chasi ngpoweranal y si sofdr awi ngar eaar et echni quesassoci at ed wi t h a.ani ndust r i al l ocat i ondeci si on b.amanuf act ur i ngl ocat i ondeci si on c. ar et ai l orpr of essi onal ser v i cel ocat i ondeci si on d.t hef act orr at i ngmet hod e. t het r anspor t at i onmet hod c( Ser v i cel ocat i onst r at egy , moder at e) 62. Whi choft hef ol l owi ngst at ement sr egar di ngSt ar bucksCof f eei sf al se? a.Thef i r m pl anst oopent hr eenewcaf esperdayar oundt hewor l d. b.Thef i r m usesGI St oev al uat eev er ysi t edeci si on. c. Thef i r m' scaf esar eexcl usi v el yi nt r adi t i onal set t i ngs: mal l s, t our i star eas, andai r por t s. d.Thef i r m pl acescaf esi nt oev ermor ei nnov at i v el ocat i ons. CLXXXI X e. Thef i r m putcaf esi nJapan, ev ent hought hatcount r yhadnoGI Sdat aav ai l abl e. c( Met hodsofev al uat i ngl ocat i ondeci si ons, easy ) 63. LaQui nt aMot orI nnshasacompet i t i v eedgeov eri t sr i v al sbecausei t a.usesr egr essi onanal y si st odet er mi newhi chv ar i abl esmosti nf l uencepr of i t abi l i t y b.pi cksbet t erl ocat i onst hani t sr i v al s c. pi cksl ar gerl ocat i onst hani t sr i v al s d.bui l dsonl yal ongi nt er st at ehi ghway s e. al l oft heabov e a( Ser v i cel ocat i onst r at egy , moder at e) 64. Tr af f i ccount sanddemogr aphi canal y si sofdr awi ngar easar eassoci at edwi t h a.i ndust r i al l ocat i ondeci si ons b.manuf act ur i ngl ocat i ondeci si ons c. ser v i cel ocat i ondeci si ons d.t het r anspor t at i onmet hod e. noneoft heabov e c( Ser v i cel ocat i onst r at egy , moder at e) 65. Whi choneoft hef ol l owi ngf act or sdoesnotaf f ectt hev ol umeandr ev enuef oraser v i ce f i r m? a.af f l uenceofcust omer dr awi ngar ea b.compet i t i oni nt hear ea c. phy si cal qual i t i esoff aci l i t i esandnei ghbor i ngbusi nesses d.qual i t yoft hecompet i t i on e. env i r onment al r egul at i ons e( Ser v i cel ocat i onst r at egy , moder at e) 66. Locat i onanal y si st echni quest y pi cal l yempl oy edbyser v i ceor gani zat i onsi ncl ude a.f act orr at i ngmet hod b.cent er of gr av i t ymet hod c. pur chasi ngpoweranal y si sofar ea d.t r af f i ccount s e. al l oft heabov e e( Ser v i cel ocat i onst r at egy , moder at e) 67. Whi choft hef ol l owi ngi smostl i kel yt oaf f ectt hel ocat i ondeci si onofaser v i cef i r mr at her t hanamanuf act ur i ngf i r m? a.ener gyandut i l i t ycost s b.at t i t udet owar duni ons c. par ki ngandaccess d.costofshi ppi ngf i ni shedgoods e. l aborcost s c( Ser v i cel ocat i onst r at egy , moder at e) 68. Whi choft hef ol l owi ngi sal ocat i onanal y si st echni quet y pi cal l yempl oy edbyaser v i ce or gani zat i on? a.pur chasi ngpoweranal y si s b.l i nearpr ogr ammi ng c. queui ngt heor y CXC d.cr ossov erchar t s e. cost v ol umeanal y si s a( Ser v i cel ocat i onst r at egy , moder at e) 69. Aj ewel r yst or ei smor el i kel yt hanaj ewel r ymanuf act ur ert oconsi der_ _ _ _ _ _ _ _ _ _i nmaki ng al ocat i ondeci si on. a.t r anspor t at i oncost s b.costofr awmat er i al s c. par ki ngandaccess d.cl i mat e e. t axes c( Ser v i cel ocat i onst r at egy , moder at e) 70. Whi choft hef ol l owi ngi sal ocat i onanal y si st echni quet y pi cal l yempl oy edbya manuf act ur i ngor gani zat i on? a.t r anspor t at i onmet hod b.queui ngt heor y c. cor r el at i onanal y si sandt r af f i ccount s d.si mul at i on e. demogr aphi canal y si s a( Ser v i cel ocat i onst r at egy , moder at e) 71. Whi choft heseassumpt i onsi snotassoci at edwi t hst r at egi esf orgoodspr oduci ng l ocat i ondeci si ons? a.Mostmaj orcost scanbei dent i f i edexpl i ci t l yf oreachsi t e. b.Focusoni dent i f i abl ecost . c. Hi ghcust omercont acti ssuesar ecr i t i cal . d.I nt angi bl ecost scanbeev al uat ed. e. Locat i oni samaj ordet er mi nantofcost . c( Ser v i cel ocat i onst r at egy , moder at e) 72. Whi choft hef ol l owi ngi smostl i kel yt oaf f ectt hel ocat i onst r at egyofamanuf act ur i ng f i r m? a.appear ance/ i mageoft hear ea b.ut i l i t ycost s c. pur chasi ngpowerofdr awi ngar ea d.compet i t i oni nt hear ea e. par ki ngav ai l abi l i t y b( Ser v i cel ocat i onst r at egy , moder at e) 73. Geogr aphi cI nf or mat i onSy st emscanassi stt hel ocat i ondeci si onby a.aut omat i ngcent er of gr av i t ypr obl ems b.comput er i zi ngf act orr at i nganal y si s c. combi ni nggeogr aphywi t hdemogr aphi canal y si s d.updat i ngt r anspor t at i onmet hodsol ut i ons e. gi v i nggoodI nt er netpl acementf orv i r t ual st or ef r ont s c( Ser v i cel ocat i onst r at egy , moder at e) FI LLI NTHEBLANK CXCI 74. FedExschedul esi t sai r cr af tusi nga_ _ _ _ _ _ _ _ _ _sy st em, whi chi tcr edi t swi t hr educi ng packagemi shandl i nganddel ayi nt r ansi t . cent r al hub( Gl obal companypr of i l e, easy ) 75. _ _ _ _ _ _ _ _ _ _cost sar er eadi l yi dent i f i abl eandcanbemeasur edwi t hpr eci si on. Tangi bl e( Fact or st hataf f ectl ocat i ondeci si ons, easy ) 76. When_ _ _ _ _ _ _ _ _ , i naddi t i ont ocr eat i v i t yandR&Di nv est ment s, i scr i t i cal t ooper at i ons st r at egy , costmayceaset obet hepr i mar yf ocusofl ocat i oncr i t er i a. i nnov at i on( Thest r at egi ci mpor t anceofl ocat i on, easy ) 77. Pol i t i cal r i sk, cul t ur al i ssues, andexchanger at esar eamongt hose_ _ _ _ _ _ _ _ _ _t hataf f ect whi chcount r ywi l l besel ect edf oral ocat i ondeci si on. Cr i t i cal SuccessFact or s( Fact or st hati nf l uencel ocat i ondeci si ons, easy ) 78. Laborcostperuni ti sal sor ef er r edt oas_ _ _ _ _ _ _ _ _ _ . l aborcont ent( Fact or st hati nf l uencel ocat i ondeci si ons, easy ) 79. Whenf i r msbui l dsuppl ychai nst hati ncl udef or ei gnf i r ms, _ _ _ _ _ _ _ _ _ _and_ _ _ _ _ _ _ _ _ _ar e i ssuest hatr ai seet hi cal andl egal concer nswi t hoper at i onsmanager s. br i ber y , cor r upt i on( Fact or st hati nf l uencel ocat i ondeci si ons, easy ) 80. _ _ _ _ _ _ _ _ _ _occur swhencompet i ngcompani esl ocat eneareachot herbecauseofacr i t i cal massofi nf or mat i on, t al ent , v ent ur ecapi t al , ornat ur al r esour ces. Cl ust er i ng( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 81. The_ _ _ _ _ _ _ _ _ _ _met hodi spopul arbecauseawi dev ar i et yoff act or s, f r om educat i ont o r ecr eat i ont ol aborski l l s, canbeobj ect i v el yi ncl uded. f act or r at i ng( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 82. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _i sacost v ol umeanal y si st omakeaneconomi ccompar i sonofl ocat i on al t er nat i v es. Locat i onal br eakev enanal y si s( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 83. The_ _ _ _ _ _ _ _ _ _ _ _i samat hemat i cal t echni queusedf orf i ndi ngt hebestl ocat i onf ora si ngl edi st r i but i onpoi ntt hatser v i cessev er al st or esorar eas. cent er of gr av i t ymet hod( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 84. The_ _ _ _ _ _ _ _ _ _ _ _ _ _i susedt odet er mi net hebestpat t er nofshi pment sf r om sev er al poi nt s ofsuppl yt osev er al poi nt sofdemand. t r anspor t at i onmet hod( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 85. I ndust r i al f i r mschoosel ocat i onst hatmi ni mi zecost , butser v i cef i r msl ookf orl ocat i ons wi t hgooddemogr aphi csandt r af f i ccountbecauset hesev ar i abl esar ei ndi cat or sofgood _ _ _ _ _ _ _ _ _ _ . r ev enueorv ol umeofbusi ness( Sect i on, easy ) 86. Dat abasescont ai ni ngsuchv ar i abl esasst r eetmaps, ut i l i t i es, popul at i onageandi ncome, andt hesof t war et hatanal y zessuchdat af orl ocat i ondeci si ons, ar er ef er r edt oas CXCI I _ _ _ _ _ _ _ _ _ _ . Geogr aphi cI nf or mat i onSy st emsorGI S( Ser v i cel ocat i onst r at egy , easy ) SHORTANSWERS 87. WhydoesFedExusea" hubandspoke"ai r l i nenet wor k, r at hert hana" poi nt t opoi nt " net wor k?Descr i beFedEx' sappr oacht ochoosi ngt heai r por t st hatser v easi t shubs. Thehubsy st em i smor ecent r al i zed, andal l owsf orgr eat ercont r ol ; gr eat ercont r ol r educespackagemi shandl i ngandt r ansi tdel ay s.Thei rU. S.hubi nMemphi sr ef l ect sa needt obegeogr aphi cal l ycent r al i zed, andi nal ocat i onwher eschedul escanmor er el i abl y bekept .( Gl obal companypr of i l e, moder at e) 88. St at et hef undament al obj ect i v eofaf i r m' sl ocat i onst r at egy .Howi st hi sbasi cobj ect i v e car r i edoutbyi ndust r i al orgoodspr oduci ngf i r ms; howdoest hatdi f f erf orser v i cef i r ms? Answeri nacl ear , conv i nci ngpar agr aph. Thef undament al obj ect i v ei st omaxi mi zet hebenef i tofl ocat i ont ot hef i r m.Fori ndust r i al l ocat i ondeci si ons, t hef ocusi sf r equent l yonmi ni mi zi ngcost , becausecostof t env ar i es dr amat i cal l yf r om onel ocat i ont oanot her .Ser v i cel ocat i ondeci si onsf ocuson maxi mi zi ngr ev enues.Ser v i cel ocat i onal t er nat i v esmayv ar yl i t t l ei ncost , buthav e dr amat i cdi f f er encesi nr ev enueorv ol ume, becauseofdi f f er encesi npopul at i on, i ncome, t r af f i ccount , orot herv ar i abl es.( Thest r at egi ci mpor t anceofl ocat i on, moder at e) 89. Li stt hechangest hathav ef ost er edgl obal i zat i on. Changest hatf ost ergl obal i zat i oni ncl udebet t eri nt er nat i onal communi cat i ons; mor er api d, r el i abl et r av el andshi ppi ng; easeofcapi t al f l owbet weencount r i es; andhi ghdi f f er ences i nl aborcost s.( Thest r at egi ci mpor t anceofl ocat i on, moder at e) 90. Mot or ol ai si nani ndust r ywher et her ear ei nt ensepr essur est okeepcost sl ow.Whydi d Mot or ol ar ej ectapossi bl el ocat i ont hatof f er edl owmanuf act ur i ngcost s? Whi l et her ear epr essur est okeepcost sl ow, costi snott heonl ydr i v erf orl ocat i on choi ces.Mot or ol ai sal soi nani ndust r yt hatv al uesi nnov at i onandcr eat i v i t y ; t hef i r m needshi ghqual i t yl abori nput s.Mot or ol af el tt hatt hel ocat i onl ackedi nf r ast r uct ur eand educat i onl ev el st hatwoul dsuppor ti t sspeci f i cpr oduct i ont echnol ogi es.( Fact or st hat i nf l uencel ocat i ondeci si ons, moder at e) 91. Consi dert het abl eofCr i t i cal SuccessFact or si ny ourt ext book.Whydosomei t ems appearatt hecount r yl ev el onl y , whi l eot her sar epr esentatbot hcount r yandr egi onal l ev el s?Sel ectoneCSFasanexampl e, andusei ti ny ourdi scussi on. Acr i t i cal successf act orshoul dappearwher ev eri ti sr el ev ant .Af act orl osesi t sabi l i t yt o di f f er ent i at eonel ocat i onf r om anot heri fi ti st hesamef oral l al t er nat i v es.Fort hi sr eason, t heCSF" exchanger at es"i sl i st edatt hecount r yl ev el .Ther ear esi gni f i cantcost sand r i sksassoci at edwi t hf or ei gncur r encyt r adi ngandf or ei gncur r encyaccount i ng; t hese cost sandr i sksv ar yf r om count r yt ocount r y .Butt her ei snoexchanger at er i skbet ween t woU. S.st at esorci t i es, orbet weent wosi t eswi t hi naci t y .( Fact or st hataf f ectl ocat i on deci si ons, di f f i cul t ) 92. Li stf i v ef act or st hataf f ectl ocat i ondeci si onsatt hesi t el ev el . Fact or st hataf f ectl ocat i ondeci si onsatt hesi t el ev el i ncl udesi t esi zeandcost ; ai r , r ai l , hi ghway , wat er waysy st ems; zoni ngr est r i ct i ons; near nessofser v i ces/ suppl i esneeded; CXCI I I andenv i r onment al i mpacti ssues.( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 93. Whati st her ol eofl aborpr oduct i v i t yi nl ocat i ondeci si ons?Whyi si tmor ei mpor t antt han l owwagesi nl ocat i ondeci si ons? Laborpr oduct i v i t yi st henumberofuni t sout putperhourofl abori nput .Forl ocat i on deci si ons, t hi si smor eof t endi spl ay edi nt hef or m of" l aborcont ent , "whi chi st hedol l ar l aborcostperuni t .Laborcont entpr ov i desausef ul compar i soni ncaseswher ewage r at esandpr oduct i v i t i esv ar ygr eat l yf r om count r yt ocount r y .( Fact or st hataf f ectl ocat i on deci si ons, moder at e) 94. Whati st hei mpactofexchanger at esonl ocat i ondeci si ons? Exchanger at esf l uct uat e, andcannegat esav i ngsf r om l owwager at es.( Fact or st hat af f ectl ocat i ondeci si on, moder at e) 95. Whyi s" qual i t yofl i f e"anel ementofi nt angi bl ecost sassoci at edwi t hl ocat i ondeci si ons? Pr ov i deanexampl easpar tofy ourdi scussi on. Qual i t yofl i f eaf f ect sl ocat i ondeci si onsi natl eastonei ndi r ectway .Consi deraf i r mt hat hasnar r owedi t sl ocat i ont ot woci t i es.Oneci t yhasanabundanceofeducat i onal and r ecr eat i onal f aci l i t i es, goodhospi t al sandpar ks.Theot herhasv er yl i t t l eoft hese el ement s.I fy ouwer eapr ospect i v eempl oy ee, i nwhi chci t ywoul dy our at herl i v e?Low qual i t yofl i f ecandr i v eupl aborcost s, andmi ghtal sohav eani mpactont r ai ni ngcost s andheal t hcar ecost s.( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 96. " Pr oxi mi t y "orcl osenessi mpl i est hataf i r m shoul dl ocat e" cl ose"t osomet hi ng.Whatar e t het hr eeki ndsofpr oxi mi t ydescr i bedi nt het ext ?Whatar et hebasi ccondi t i onsunder whi cheachi sappr opr i at e?Whatki ndsoff i r msar el i kel yt ouseeachoft hese? Thet hr eear epr oxi mi t yt omar ket s, pr oxi mi t yt osuppl i er s, andpr oxi mi t yt ocompet i t or s. Pr ox i mi t yt omar ket si sappr opr i at ewhencust omer swi l l nott r av el f art ogett hegoodor ser v i ce, orwhendel i v er i ngt hepr oductt ot hecust omeri scost l yordi f f i cul t .Many ser v i cesmustbecl oset ot hei rmar ket s, asmusthomeconst r uct i on.Pr oxi mi t yt o suppl i er si sappr opr i at ewhenr awmat er i al sar eper i shabl e, orwhensuppl i esar ecost l yor bul kyt ot r anspor t .Seaf oodpr ocessor sneedt obeneart hedocks, andsmel t er sneedt o beneart hemi nes.Pr oxi mi t yt ocompet i t or sr ef l ect saki ndofsy ner gy —r et ai l er sf i ndt hat v ol umei shi gherwhent her ear emor ecompet i t or snear by , becauset hi scl ust er i ngbr i ngs hi ghert r af f i ccount s.( Fact or st hataf f ectl ocat i ondeci si ons, di f f i cul t ) 97. Consi dert het abl eofCr i t i cal SuccessFact or si ny ourt ext book.Fr om i t emsont hatl i st , sel ectt wowhi chmi ghti nv ol v eet hi cal i ssuesori ssuesofsoci al r esponsi bi l i t y , andci t ea possi bl eexampl eofeach.Wr i t eabr i efexpl anat i onofeachofy ourexampl es.Ci t eand descr i beat hi r dexampl e, f r om anar eanotcov er edbyt heCSFs. Att hecount r yl ev el , goodcandi dat esar ecul t ur al andeconomi ci ssues, l aborav ai l abi l i t y andcost s.( Br i ber y , cor r upt i on, chi l dl abor , sl av el abor , r aci al andgenderdi scr i mi nat i oni n t hewor kf or ceal l r ai seet hi cal i ssues. )Att her egi onal l ev el , env i r onment al concer ns, and l andcostar egoodcandi dat es.( Cor r upt i on, br i ber y , orcr ony i sm mi ghtbeassoci at edwi t h l anddeal s; ormanager smi ghtbet empt edt ol ocat ewher eenv i r onment al l awsar el ess l i kel yt obeenf or ced. )Att hesi t el ev el , zoni ngandenv i r onment al i mpactar eeasyt ar get s. ( Ther emi ghtbebr i ber yorcor r upt i onr el at edt ozoni ngi ssuesorenv i r onment al per mi t s. ) Of ft hel i stofCSFs, st udentexampl escani ncl udecor r upt i onandbr i ber yi nexchangef or i ncent i v es.( Fact or st hataf f ectl ocat i ondeci si ons, di f f i cul t ) CXCI V 98. Li stt hosef act or si dent i f i edi nt het ext bookascr eat i ngl egal oret hi cal i ssuesf or oper at i onsmanger sast heyanal y zel ocat i ondeci si ons. Thet exti dent i f i esbr i ber y , cor r upt i on, chi l dl abor , sweat shopandot herpoorwor ki ng condi t i ons.Thet extal soi dent i f i esal l egi ance—doesaf i r m oweany t hi ngt oat ownor st at et hati ti saboutt odepar tf r om?( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 99. Whati si tcal l edwhencompet i ngcompani esl ocat enextt oeachot her ?Whydot heydo t hi s? I ti scal l edcl ust er i ng.I nmanycases, t hi soccur sbecauseofacr i t i cal massof i nf or mat i on, t al ent , v ent ur ecapi t al , ornat ur al r esour ces.Al t er nat el y , cl ust er i ngoccur s becausesev er al f i r mscl oset oget hercr eat eal ar gert ot al mar kett hant hesamef i r ms separ at ed.( Fact or st hataf f ectl ocat i ondeci si ons, moder at e) 100.Li stt hef ourmaj orquant i t at i v emet hodsf orsol v i ngl ocat i onpr obl ems. Fact orr at i ngmet hod, l ocat i onal br eakev enanal y si s, cent er of gr av i t ymet hod, and t r anspor t at i onmet hod.( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 101.Whatar et headv ant agesanddi sadv ant agesoft heuseoff act orr at i ngschemes? Fact orr at i ngcanhandl eami xofquant i t at i v eandqual i t at i v ev ar i abl es; i t scal cul at i onsar e si mpl eandst r ai ght f or war d.Fact orr at i ngi ssubj ectt osensi t i v i t yt osmal l swi ngsi n wei ght sandscor es, andi ssubj ectt osubj ect i v i t y( di f f er entj udgesseedi f f er entscor esf or samesi t e) .( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 102.Whatki ndsofl ocat i ondeci si onsar eappr opr i at ef oruseofcr ossov eranal y si s?Wr i t ea br i efpar agr aphexpl ai ni nghowcr ossov eranal y si s( br eakev enanal y si s)canassi stan oper at i onsmanagerchooseamongal t er nat i v esi t esi nmaki ngal ocat i ondeci si on. Cr ossov eranal y si si sappr opr i at ewhent hepr i mar yf ocusofal ocat i ondeci si oni scost . Foreachal t er nat i v esi t e, cr ossov eranal y si sconst r uct sat ot al costcur v ecomposedofa f i xedcostandav ar i abl ecostt hatdependsuponv ol ume.Wher et hesecostcur v es i nt er sect( orcr ossov er )i st hepoi ntatwhi cht woal t er nat i v eshav et hesamecost .The gr aphoft hecostcur v esofal l al t er nat i v esi t eswi l l di spl ayt her angeofv ol umesov er whi cheachsi t ehast hel owestcostofal l al t er nat i v es.( Met hodsofev al uat i ngl ocat i on deci si ons, moder at e) 103.Whatki ndsofl ocat i ondeci si onsar eappr opr i at ef oruseofcent er of gr av i t yanal y si s? Whatv ar i abl ei sbei ngopt i mi zedi nt hi sanal y si s? Thecent er of gr av i t yt echni quei sappr opr i at ewhent hel ocat i ondeci si onmustf i nda si ngl ecent r al l y l ocat edsi t et oser v eanynumberofout l y i ngpoi nt s; l ocat i ngadi st r i but i on cent ert oser v eadozenr et ai l st or esi sanexampl e.Theanal y si sl eadst oal ocat i ont hat ( appr oxi mat el y )mi ni mi zest hedi st r i but i oncost( ort ot al di st ancet r av el ed)bet weenal l out l y i ngpoi nt sandt hecent erorhub.( Met hodsofev al uat i ngl ocat i ondeci si ons, moder at e) 104.I sSt ar bucksCof f eeauserofGeogr aphi cI nf or mat i onSy st ems?Suppor ty ouranswerwi t h exampl es. St ar bucksi scl ear l yauserofGI S.Dat abasesr ev eal popul at i on, age, pur chasi ngpower , t r af f i ccount , andmor e, f ort hebl ocksar oundeachpot ent i al si t e.Si t esar ecompar edon t hebasi soft hesev ar i abl es.( Ser v i cel ocat i onst r at egy , easy ) CXCV 105.Howdoest heSt ar bucksCof f eecasei l l ust r at et hegener al pr i nci pl esofser v i cel ocat i on st r at egy ? St ar bucksCof f eecl ear l ysel ect ssi t esont hebasi sofr ev enueorv ol ume, notcost .They cl ear l ypayat t ent i ont osuchv ar i abl esasdr awi ngpower , compet i t i on, andt r af f i ccount s, al l ofwhi char eappr opr i at ef orser v i cel ocat i ondeci si ons.St ar bucksCof f eei sauserof GI S, whi chi smor eat ool ofser v i cel ocat i ont hanofi ndust r i al l ocat i on.Ther ei sno i ndi cat i ont hatSt ar bucksCof f eeusesshi pmentcost s, l aborcost , br eakev enanal y si s, or t r anspor t at i onmet hod, whi char ev ar i abl esandt ool sassoci at edwi t hi ndust r i al l ocat i on deci si ons.( Ser v i cel ocat i onst r at egy , easy ) 106.Ser v i cel ocat i onst r at egi esandgoodspr oduci ngl ocat i onst r at egi esr el yonv er ydi f f er ent set sofassumpt i ons.Whatar et heassumpt i onsassoci at edwi t hgoodspr oduci ng l ocat i ons?Howdot heseassumpt i onsl eadt oal ocat i onst r at egy ? Theassumpt i onsf orgoodspr oduci ngl ocat i onsar e: l ocat i oni samaj ordet er mi nantof cost ; mostmaj orcost scanbei dent i f i edexpl i ci t l yf oreachsi t e; l owcust omercont act al l owsf ocusont hei dent i f i abl ecost s; andi nt angi bl ecostcanbeobj ect i v el yev al uat ed. Ont hebasi soft heseassumpt i ons, t hel ocat i onst r at egyf orgoodspr oduci ngf i r msi s usual l yai medatmi ni mi zi ngcost .( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 107.Howdoser v i cef aci l i t yl ocat i ondeci si onsdi f f erf r om i ndust r i al l ocat i ondeci si onsi nt er ms oft het echni quesusedt oanal y z et hem? Ser v i cel ocat i ondeci si onst endt of ocusont her ev enuef unct i on, wher eas manuf act ur i ng/ i ndust r i al l ocat i ondeci si onst endt of ocusoncost s.Theser v i cesect or usest echni quessuchascor r el at i onanal y si s, t r af f i ccount s, demogr aphi canal y si s, and pur chasi ngpoweranal y si s.Thei ndust r i al deci si onusest r anspor t at i onmet hod, f act or wei ght i ngappr oach, br eakev enanal y si s, andcr ossov erchar t s.( Ser v i cel ocat i onst r at egy , moder at e) PROBLEMS 108.Amanuf act ur i ngcompanypr epar i ngt obui l danewpl anti sconsi der i ngt hr eepot ent i al l ocat i onsf ori t .Thef i xedandv ar i abl ecost sf ort het hr eeal t er nat i v el ocat i onsar e pr esent edbel ow. a.Compl et eanumer i cl ocat i onal cost v ol umeanal y si s. b.I ndi cat eov erwhatr angeeachoft heal t er nat i v esA, B, Ci st hel owcostchoi ce. c.I sanyal t er nat i v enev erpr ef er r ed?Expl ai n. Cost s A 2, 500, 000 Fi xed( $) 21 Var i abl e( $peruni t ) B 2, 000, 000 25 C 3, 500, 000 15 Bi scheapestupt o125, 000uni t s; Ci scheapestaf t er166, 667uni t s.Ai scheapesti n bet ween.TheBCcr ossov eri snotr el ev ant .Thuseachal t er nat i v ehasanat t r act i v er ange. Br eakev enpoi nt s Uni t s Opt i onAv s.Opt i onB 125, 000 Opt i onAv s.Opt i onC 166, 667 Dol l ar s 5, 125, 000 6, 000, 000 CXCVI Opt i onBv s.Opt i onC 150, 000 5, 750, 000 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 109.Af ar mer s' cooper at i v eassoci at i onpl anst obui l danewsugarmi l l i nSout hwest er n Loui si ana.Thepr i mar yobj ect i v eoft hemi l l i st opr ov i det hef ar mer swi t hapl acet ot ake t hei rcr opf orpr ocessi ngt hatwi l l r educet hei rt r anspor t at i oncost s.Themember soft he coopbel i ev et hatt hecent er of gr av i t ymet hodi sappr opr i at ef ort hi sobj ect i v e.Whi l e t her ear eov er200sugarcanef ar msi nt her egi on, t heyar et i ght l ycl ust er edar oundsi x v i l l ages.Usi ngt hedat abel ow, uset hecent er of gr av i t ymet hodt ocal cul at et he coor di nat esoft hebestl ocat i onf ort hi smi l l .Ont hegr i dbel ow, pl ott hel ocat i onoft hesi x f ar m cl ust er sandt hecal cul at edmi l l l ocat i on.Al l mi l eager ef er encesuset heci t yofLake Char l esas( 0, 0) . Vi l l age Ar ceneaux Boudr eaux Canci enne Dar bonne Ev angel i ne Font enot Mi l esEastof LakeChar l es 90 140 20 50 100 10 SEENEXTPAGEFORSOLUTI ON. CXCVI I Mi l esNor t hof LakeChar l es 10 60 70 20 80 120 SugarCane t onnage 240, 000 320, 000 450, 000 120, 000 60, 000 140, 000 Thecent erofgr av i t y , wei ght edbyt het onnageateachv i l l agecl ust er , i sabout66. 8mi l es eastofLakeChar l esand58. 0mi l esnor t hofLakeChar l es. ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 110.Acl ot hi ngchai ni sconsi der i ngt wodi f f er entl ocat i onsf oranewr et ai l out l et .The or gani zat i onhasi dent i f i edt hef ourf act or sl i st edi nt hef ol l owi ngt abl east hebasi sf or ev al uat i on, andhasassi gnedwei ght sasshownont her i ghtsi deoft hi st abl e.The managerhasr at edeachl ocat i ononeachf act or , ona100poi ntbasi s( hi gherscor esar e bet t er ) , asshowni nt her i ght handt abl e. a.Cal cul at et hecomposi t escor ef oreachal t er nat i v el ocat i on. b.Whi chsi t eshoul dbechosen? c.Ar ey ouconcer nedaboutt hesensi t i v i t yandsubj ect i v i t yoft hi ssol ut i on?Comment . Fact or Fact orDescr i pt i on Wei ght 1 Av er agecommuni t yi ncome . 40 2 Communi t ygr owt hpot ent i al . 25 3 Av ai l abi l i t yofpubl i ct r anspor t at i on . 15 4 Laborcost . 20 CXCVI I I Bar cl ay Chest er 75 70 60 80 45 90 80 65 Thehi gherr at edsi t ei sChest er , 74. 5t o67. 75.Ther ei samar gi nofsev er al poi nt s, whi ch shoul dov er comemostl ev el sofsubj ect i v i t y .Thesi t ef act orscor esar equi t edi f f er ent , so t hatasmal l swi ngi nwei ght scoul dpr oduceswi ngsi nscor esofaf ewpoi nt s, but pr obabl ynott hesev ennecessar yt or ev er set hef i ndi ngs. Wei ght Bar cl ay Chest er 0. 40 75 70 Fact or1 0. 25 60 80 Fact or2 0. 15 45 90 Fact or3 0 . 2 0 8 0 65 Fact or4 Tot al 1. 00 Wei ght edsum 67. 75 74. 5 Wei ght edav er age 67. 75 74. 5 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 111.Amanuf act ur i ngcompanyi sconsi der i ngt woal t er nat i v el ocat i onsf oranewf aci l i t y .The f i xedandv ar i abl ecost sf ort het wol ocat i onsar ef oundi nt het abl ebel ow.Forwhi ch v ol umeofbusi nesswoul dt het wol ocat i onsbeequal l yat t r act i v e?I ft hecompanypl ans onpr oduci ng50, 000uni t s, whi chl ocat i onwoul dbemor eat t r act i v e? Fi xedCost s Var i abl eCost s( $peruni t ) Gl enRose $1, 000, 000 25 Mesqui t e $1, 500, 000 23 Cr ossov eri sat250, 000uni t s.Bel owt hecr ossov er , Gl enRosemustbecheaperasi thas t hel owerf i xedcost .Thus, f oranest i mat eduni tv ol umeof50, 000, Gl enRoseshoul dbe chosen. Br eakev enpoi nt s Uni t s Dol l ar s Opt i on1v s.Opt i on2 250, 000 7, 250, 000 Vol umeanal y si sat50, 000uni t s Opt i on1 Opt i on2 t ot al cost $2, 250, 000. 00$2, 650, 000. 00 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 112.EastTexasSeasoni ngsi spr epar i ngt obui l donepr ocessi ngcent ert oser v ei t sf our sour cesofseasoni ngs.Thef oursour cel ocat i onsar eatcoor di nat esshownbel ow.Al so, t hev ol umef r om eachsour cei spr ov i ded. a.Cal cul at et hev ol umewei ght edcent erofgr av i t y . b.Cal cul at et hesi mpl ecent erofgr av i t y( al l ci t i eswei ght edequal l y ) . c. Expl ai nwhyt het wocal cul at i onsdi f f er . At hens, Texas Beaumont , Texas Xcoor di nat e Ycoor di nat e 30 40 20 15 CXCI X Vol ume 100 400 Car t hage, Texas Dent on, Texas 55 20 60 70 150 250 Thewei ght edcent erofgr av i t yi sl ocat edatX=24, 250/900=26. 9, Y=36, 500/900= 40. 6.Thesi mpl ecent erofgr av i t yi sl ocat edatX=125/4=31. 25.Y=185/4=46. 25. Thesi mpl ecent eri smor et ot heeastandnor t ht hant hewei ght edcent erofgr av i t y .A par t i al expl anat i oni st hatt heheav i estt onnagei sf r om Beaumont , whi chi sf art ot hewest andsout h.I t si nf l uencepul l st hewei ght edcent ert owar dt hewestandsout h. ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 113.Locat i onAwoul dr esul ti nannual f i xedcost sof$300, 000andv ar i abl ecost sof$55per uni t .Annual f i xedcost satLocat i onBar e$600, 000wi t hv ar i abl ecost sof$32peruni t . Sal esv ol umei sest i mat edt obe30, 000uni t spery ear .Whi chl ocat i onhast hel owercost att hi sv ol ume?Howl ar gei si t scostadv ant age?Atwhatv ol umear et het wof aci l i t i es equal i ncost ? At30, 000uni t s, Locat i onAhast ot al cost sof$1, 950, 000, whi l eLocat i onBhast ot al cost s of$1, 560, 000.Locat i onBi scheaperby$390, 000.Thecr ossov eroccur swher e600, 000+ 32X=300, 000+55X, oratX=300, 000/23=13, 043uni t s.( Met hodsofev al uat i ng l ocat i onal t er nat i v es, moder at e) 114.Usi ngt hef act orr at i ngsshownbel ow, det er mi newhi chl ocat i onal t er nat i v eshoul dbe chosenont hebasi sofmaxi mum composi t escor e. Locat i on Fact or Wei ght A B C 0. 15 86 72 90 Easyaccess 0. 20 72 77 91 Par ki ngf aci l i t i es 0. 18 86 90 90 Di spl ayar ea 0 . 2 1 9 4 8 6 80 Shopper( wal ki ng)t r af f i c 0. 16 99 89 81 Nei ghbor hoodweal t h 0. 10 96 85 75 Nei ghbor hoodsaf et y Ai sbest( 87. 96) , f ol l owedbyC( 85. 16) .Bi ssomewhatf ur t herbehi nd( 83. 20) . Wei ght A B C Easyaccess 0. 15 86 72 90 Par ki ngf aci l i t i es 0. 20 72 77 91 Di spl ayar ea 0. 18 86 90 90 CC Shopper( wal ki ng)t r af f i c 0. 21 94 86 Nei ghbor hoodweal t h 0. 16 99 89 Nei ghbor hoodsaf et y 0. 10 96 85 Tot al 1. 00 Wei ght edsum 87. 96 83. 20 Wei ght edav er age 87. 96 83. 20 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 80 81 75 85. 16 85. 16 115.Amanagerhasr ecei v edananal y si sofsev er al ci t i esbei ngconsi der edf oranewor der f ul f i l l mentcent er( war ehouse)f orShopatHomeNet wor k.Thescor es( scal ei s10poi nt s =best )ar econt ai nedi nt het abl ebel ow. a.I ft hemanagerwei ght st hef act or sequal l y , howwoul dt hel ocat i onsber anked? b.I ft r anspor t at i oncost sandoper at i ngcost sar egi v enwei ght st hatar edoubl et he wei ght soft heot her s, shoul dt hel ocat i onsber ankeddi f f er ent l y ? Locat i on Fact or W X Y Z 7 9 5 4 Busi nessser v i ces 5 7 6 7 Communi t yser v i ces 7 3 8 6 Real est at ecost 8 6 6 5 Const r uct i oncost s 5 4 7 6 Oper at i ngcost s 6 9 6 4 Busi nesst axes 8 6 7 8 Tr anspor t at i oncost s SEESOLUTI ONONNEXTPAGE. Thel ocat i onsar er ankedW, Y, X, Zwi t hequal wei ght s; butW andYt i ef orhi ghest , andZ andXt i ef orl owestasr ev i sed. Wei ghtW X Y Z Busi nessser v i ces 1 7 9 5 4 Communi t yser v i ces 1 5 7 6 7 Real est at ecost 1 7 3 8 6 Const r uct i oncost s 1 8 6 6 5 Oper at i ngcost s 1 5 4 7 6 Busi nesst axes 1 6 9 6 4 Tr anspor t at i oncost s 1 8 6 7 8 Tot al 7 46 44 45 40 Wei ght edav er age 6. 579 6. 286 6. 429 5. 714 Busi nessser v i ces Communi t yser v i ces Real est at ecost Const r uct i oncost s Oper at i ngcost s Busi nesst axes Tr anspor t at i oncost s Wei ghtW 1 7 1 5 1 7 1 8 2 5 1 6 2 8 X 9 7 3 6 4 9 6 CCI Y 5 6 8 6 7 6 7 Z 4 7 6 5 6 4 8 Tot al 9 Wei ght edsum 59 54 59 Wei ght edav er age 6. 56 6 6. 56 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 54 6 116.At el ecommuni cat i onsf i r mi spl anni ngt ol ayf i beropt i ccabl ef r om sev er al communi t y col l egedi st ancel ear ni ngsi t est oacent r al st udi o, i nsuchawayt hatt hemi l esofcabl ear e mi ni mi zed.Somel ocat i onsr equi r emor et hanonesetofcabl es( t hesear et hel oads) . Wher eshoul dt hest udi obel ocat edt oaccompl i sht heobj ect i v e? Col l ege MapCoor di nat e( x, y ) Load A ( 2, 10) 3 B ( 6, 8) 2 C ( 4, 9) 4 D ( 9, 5) 1 E ( 8, 1) 3 F ( 3, 2) 2 G ( 2, 6) 1 Thi si sacent erofgr av i t ypr obl em, ev ent houghi ti snotaboutshi ppi ngt angi bl ei t ems. Thecent erofgr av i t yi satcoor di nat esX=4. 69, Y=6. 25. Wei ght Xcoor d Ycoor d Locat i on 3 1 2 10 Locat i on 2 2 6 8 Locat i on 4 3 4 9 Locat i on 1 4 9 5 Locat i on 3 5 8 1 Locat i on 2 6 3 2 Locat i on 1 7 2 6 Sum 16 34 41 Av er age 4. 857 5. 857 Wei ght ed Av er age 4. 6875 6. 25 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CCI I 117.Theownerofami l l wor kshopi sconsi der i ngt hr eeal t er nat i v el ocat i onsf oranewpl antf or bui l di ngembossedandcl adst eel ext er i ordoor sf orr esi dences.Fi xedandv ar i abl ecost s f ol l ow.Si ncet hepl antshi psnat i onwi de, r ev enuei sassumedt hesamer egar dl essofpl ant l ocat i on.Pl ott het ot al costl i nesi nt hechar tpr ov i dedbel ow, andi dent i f yt her angeov er whi cheachl ocat i oni sbest . Cost s Fi xed Var i abl e Locat i on A B C $700, 000 $1, 000, 000 $1, 100, 000 $28 $18 $20 Ai scheapestf r om 0t oabout30, 000uni t s.Bi scheapestt her eaf t er .Ccannev erbe pr ef er r ed. Br eakev enpoi nt s Locat i onAv s.Locat i onB Locat i onAv s.Locat i onC Locat i onBv s.Locat i onC Uni t s 30, 000 50, 000 50, 000 Dol l ar s $1, 540, 000 $2, 100, 000 $100, 000 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CCI I I 118.Amanuf act ur i ngf i r mi sconsi der i ngt hr eepot ent i al l ocat i onsf oranewpar t s manuf act ur i ngf aci l i t y .Aconsul t i ngf i r m hasassessedt hr eesi t esbasedont hef our f act or ssuppl i edbymanagementascr i t i cal t ot hel ocat i on' ssuccess.Gi v ent he management suppl i edf act orwei ght sandt heconsul t antt eam scor es, whi chl ocat i on shoul dbesel ect ed?Scor esar ebasedon50=best .Dot her esul t ssur pr i sey oui nanyway ? Comment . Fact or LaborCl i mat e Taxes Ut i l i t i es Wages Wei ght 10 30 20 40 A 35 30 25 10 Locat i on B 45 40 20 25 C 20 40 45 25 Ci scl ear l ybet t ert hanei t herAorB.Thi spr obl em i l l ust r at est hei mpor t anceofhav i ng goodscor esoni mpor t antf act or s.Bhasscor est hatar eaboutashi ghast hoseofC, but i nt hewr ongpl aces. Wei ght Locat i onA Locat i onB Locat i onC LaborCl i mat e 10 35 45 20 Taxes 30 30 40 40 Ut i l i t i es 20 25 20 45 Wages 40 10 25 25 Tot al 100 Wei ght edsum 2150 3050 3300 Wei ght edav er age 21. 5 30. 5 33. 0 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 119.Env i r onment al Gl assPr oduct s, I nc.want st obui l danewcent r al i zedf aci l i t yt or ecei v e househol d, commer ci al , andi ndust r i al gl assf orr ecy cl i ng.Thi scent erwi l l besuppl i edby t r uckscomi ngf r om f our" col l ect i onpoi nt s, "wher er ecy cl abl egl assi sdr oppedof fby i ndi v i dual sandbusi nesses.Thev ol umeandt hemapcoor di nat esf ort hef ourcol l ect i on cent er sar eshownbel ow.Wher eshoul dt hecol l ect i oncent erbel ocat ed? Col l ect i onpoi nt A B C D Load 9, 000 4, 000 2, 000 5, 000 ( X, Y)Coor di nat es ( 4, 8) ( 7, 2) ( 4, 1) ( 7, 3) Thecent ershoul dbebui l tnearcoor di nat es( 5. 35, 4. 85) . Col l ect i onPoi nt Wei ght Xcoor d Ycoor d 9, 000 4 8 A 4, 000 7 2 B 2, 000 4 1 C 5, 000 7 3 D Sum 20, 000 22 14 Av er age 5. 5 3. 5 Wei ght edAv er age 5. 35 4. 85 CCI V ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 120.Amanuf act ur erofst ampedmet al aut opar t shasf ourpar t sf act or i esi noneci t yatt he l ocat i oncoor di nat esshownbel ow.Eachcoor di nat euni tr epr esent saci t ybl ock( r oughl y 100met er s) .They ear l ydemandateachf act or yi sal sogi v en. Fact or i es Ray bur nI ndust r i al Par k Por tofZav al l a Hender sonMf g.Cent er WaxMi l l sSi t e Demand XCoor d. YCoor d. 19, 000 20 130 3, 000 60 40 5, 000 70 100 6, 000 90 30 Managementhasdeci dedt obui l danewsheetmet al mi l l , t osuppl yt hesef act or i es, ata l ocat i oncent r al t ot hesepl ant s.Whatshoul dbet hemapcoor di nat esoft henewpl ant ?On t hegr i dbel ow, gr apht hel ocat i onsoft hef ourpar t sf act or i esandt hepr oposedsheet met al mi l l . SEESOLUTI ONONNEXTPAGE. CCV Themi l l shoul dbel ocat ednear( 44, 99) .Thecent er of gr av i t ymodel doesnotf av orany si ngl edat apoi nt ; i ti st hewei ght edav er ageoft hem al l .I nt hi scase, bei ngcent r al does notmeanbei ngcl oset oanysi ngl ef act or y , buti ti scl osert ot hecol l ect i onofal l f ourt han anyot hermi l l l ocat i oncoul dbe. ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 121.Asmal l pr oducerofmusi cboxeswant st omov et oal ar gerf aci l i t y .Twoal t er nat i v e f aci l i t i eshav ebeenf ound.Si t e1hasaf i xedcostof$500, 000pery ear , wi t hav ar i abl e costof$25peruni t .Si t e2hasaf i xedcostof$800, 000pery ear , butav ar i abl ecostof $22peruni t . a.Wr i t eoutt heequat i onf ort ot al costf oreachsi t e. b.Atwhatv ol umeofout putwoul dt het wol ocat i onshav et hesamet ot al cost ? c. Forwhatr angeofout putwoul dSi t e1besuper i or ? d.Forwhatr angeofout putwoul dSi t e2besuper i or ? ( a)Theequat i onf ort het ot al costatsi t e1i sTC=500, 000+25X, wher eXi sv ol ume.The equat i onf ort ot al costatSi t e2i sTC=800, 000+22X.( b)Sett heset woequat i onsequal andsol v ef orX.500, 000+25X=800, 000+22Xl eadst o300, 000=3X, t hent oX= 100, 000.Si t e1i spr ef er r edf orv ol umesupt o100, 000uni t s, andsi t e2i spr ef er r edaf t er 100, 000uni t s. ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CCVI 122.Asmal l manuf act ur eri sconsi der i ngsev er al l ocat i onsf oranewf aci l i t y .Theyhav e i dent i f i edf ourf act or st hatt heyconsi dert obei mpor t antf ort hei rl ocat i ondeci si on.They hav edeci dedt oassi gnscor est ot hef ourf act or s, wi t hahi gherscor ei ndi cat i ngamor e f av or abl el ocat i on.Uset hei nf or mat i oni nt hef ol l owi ngt abl et oper f or m af act orr at i ngt o sel ectt hebestl ocat i on. Wei ght Wages 40 LaborCl i mat e 30 Taxes 15 Ut i l i t i es 15 Locat i onALocat i onBLocat i onC 30 75 90 40 70 40 80 40 90 75 60 10 Locat i onBi st hepr ef er r edl ocat i on. Wei ght Locat i onALocat i onBLocat i onC Wages 40 30 75 90 LaborCl i mat e 30 40 70 40 Taxes 15 80 40 90 Ut i l i t i es 15 75 60 10 Tot al 100 Wei ght edsum 4725 6600 6300 Wei ght edav er age 47. 25 66 63 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) 123.Acont r act orf ort hemi l i t ar yi sl ooki ngf oranewl ocat i onf orasuppl ydepot .Thedepotwi l l suppl yf ourbaseswhoset onnage( demand)andmapcoor di nat esar eshownbel ow.I f managementwant st hedepott ohav eacent r al l ocat i on, whatshoul dbei t smap coor di nat es? Bases For tAbl e BaseBaker CampChar l i e CampDel t a ( X, Y)Coor di nat es Tonnage 30, 000 ( 40, 110) 60, 000 ( 70, 50) 35, 000 ( 90, 20) 75, 000 ( 70, 80) Thedepotshoul dbel ocat ednearX=69, Y=65. Bases Wei ght Xcoor d Ycoor d Xmul t . Ymul t . For tAbl e 30, 000 40 110 1, 200, 000 3, 300, 000 BaseBaker 60, 000 70 50 4, 200, 000 3, 000, 000 CampChar l i e 35, 000 90 20 3, 150, 000 700, 000 CampDel t a 75, 000 70 80 5, 250, 000 6, 000, 000 Sum 200, 000 270 260 13, 800, 00013, 000, 000 Wei ght edAv er age 69 65 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, moder at e) CCVI I 124.Ahi ghwaycont r act orneedst ol ocat easi ngl esuppl ypoi ntt opr ov i der oadbui l di ng mat er i al st of ourpr oj ect s.Thef ourpr oj ect s, whi char eal l appr oxi mat el yt hesame magni t ude, ar el ocat edatt hef ol l owi ngcoor di nat es.Coor di nat euni t sar ei nmi l es. Pr oj ectA Pr oj ectB Pr oj ectC Pr oj ectD X( East ) Y( Nor t h) 50 10 15 60 40 60 30 20 a.Ont hegr i dbel ow, pl ott hel ocat i onsoft hef ourr oadbui l di ngsi t es.Pr oper l yl abel al l poi nt s. b.Whati st hecent erofgr av i t y ? c. I fasi ngl et r uckwer esentf r om cent ert oeachpr oj ectandback( f ourr oundt r i ps) , how manymi l eswoul dbet r av el ed?( Hi nt : uset hePy t hagor eanTheor em d.Addt hecal cul at edcent erofgr av i t yt ot hegr i d. Thesuppl ypoi ntshoul dbeat( 33. 75, 37. 50) . Pr oj ectA Pr oj ectB Pr oj ectC Pr oj ectD Sum Av er age Wei ght edAv er age Wei ght Xcoor d Ycoor d 1 50 10 1 15 60 1 40 60 1 30 20 4 135 150 33. 75 37. 5 33. 75 37. 5 Di st ance t oCOG Pr oj ectA 31. 94 Pr oj ectB 29. 29 Pr oj ectC 23. 35 Pr oj ectD 17. 90 ( Met hodsofev al uat i ngl ocat i onal t er nat i v es, di f f i cul t ) CCVI I I ) .