Fall 2018-2019 1 BA2601 Operations Management Recitation 2 1. An electronics manufacturer must expand by building a second facility. The search has been narrowed to four locations, all acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown in table below. For example, location A has a factor score of 5 (excellent) for labor climate; the weight for this factor (20) is the highest of any. Calculate the weighted score for each location. Which location should be recommended? 2. The operations manager for Mile-High Beer has narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown in table below. a. Which of the communities can be eliminated from further consideration because they are dominated (both variable and fixed costs are higher) by another community?
- Fall '09
- Annual fixed costs, rectilinear distance, factor score