Question 1

The point has been reached where a manufacturer's research and development center must expand by building a new facility. The search has been narrowed to five locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the five subjective location factors that follow. Management has agreed to use a five- point scale (Excellent = 5, and Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites). The weight reflects the importance of each factor in the decision.
Locations $$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Factor } & \text { Weight } & \text { A } & B & C & \mathrm { D } & \
\hline \text { Labor Climate } & 0.30 & 4 & 2 & 1 & 4 & \
\text { Proximity to Markets } & 0.30 & 5 & 3 & 3 & 4 & \
\text { Quality of Life } & 0.15 & 1 & 3 & 2 & 1 & \
\text { Proximity to Suppliers } & 0.15 & 2 & 5 & 3 & 4 & \
\text { Taxes } & 0.10 & 4 & 4 & 4 & 1 & \
\hline
\end{array}$$ Calculate the weighted score for each alternative. Which location would you recommend?

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Question 2

What are four major questions that must be addressed as part of a layout planning effort?

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Question 3

Explain the concept of critical mass as it applies to location decisions for service providers. Within your response, include at least one example of a service industry where critical mass is a dominant factor in location decisions.

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Question 4

A company has determined the "demand points" and their relative locations as follows: $$\begin{array} { | l | l | l | c | } 
\hline \text { Demand Points } & X \text {-Coordinate } & Y \text {-Coordinate } & \text { Load } \
\hline \text { A } & 10 & 11 & 150 \
\mathrm {~B} & 21 & 18 & 150 \
\mathrm { C } & 15 & 12 & 200 \
\mathrm { D } & 21 & 15 & 250 \
\hline
\end{array}$$ a. If a company desires to locate a manufacturing facility at the center of gravity, what would be the x- and y- coordinates of the facility?
b. If a facility were to be located at (15, 15), what would be the load- distance score? (Assume rectilinear distance.)
c. If a facility were to be located at (15, 15), what would be the load- distance score? (Assume Euclidean distance.)

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Question 5

Explain the distinction between facilities that are based on flexible- flow layouts and fixed- position layouts.

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Question 6

A firm of four departments has the following trip matrix and current block plan of all departments: $$\begin{array} { | l | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Dept. } \
\text { Name }
\end{array} & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \mathrm { A } & - & 14 & 6 & 9 \
\hline \text { B } & & - & 7 & 16 \
\hline \text { C } & & & & 2 \
\hline \text { D } & & & & - \
\hline
\end{array}$$ $$\begin{array} { | l | l | } 
\hline A & B \
\hline D & C \
\hline
\end{array}$$ a. What is the load- distance score for the current layout? (Assume rectilinear distance and that the distance between departments A and B is one unit of distance.)
b. What would be the load- distance score for the following layout? $$\begin{array} { | c | c | } 
\hline \text { A } & \text { C } \
\hline \text { D } & \text { B } \
\hline
\end{array}$$

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Question 7

The operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow: $$\begin{array} { | l | l | l | } 
\hline \text { Location } & \text { Fixed Costs } & \text { Variable Costs } \
& \text { Per Year } & \text { Per Unit } \
\hline \text { A } & 70,000 & 25 \
\text { B } & 120,000 & 22 \
\text { C } & 250,000 & 17 \
\hline
\end{array}$$ Plot the total cost curves in the chart provided below, and identify the range over which each location would be best. Then use break- even analysis to calculate exactly the break- even quantity that defines each range. $$73$$  a. What is the break- even quantity between A and B?
b. What is the break- even quantity between B and C?

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Question 8

Briefly explain the series of steps typically followed in the process of selecting a new facility location from several possible sites.

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Question 9

A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 (worst) to 10 (best) on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows.
$$\begin{array}{l}
\text { Location }\
\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Factor } & \text { Weight } & \text { A } & \text { B } & \text { C } & \text { D } \
\hline \text { Wages } & 0.40 & 7 & 5 & 3 & 5 \
\text { Labor Climate } & 0.35 & 6 & 5 & 9 & 5 \
\text { Local Regulation } & 0.15 & 3 & 4 & 3 & 2 \
\text { Weather } & 0.10 & 2 & 8 & 6 & 9 \
\hline
\end{array}
\end{array}$$
Based on weighted scores, where should the company locate its new facilities?

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Question 10

Explain the distinction between the use of heuristics, simulation, or optimization as analytical procedures to support location decisions.

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Question 11

Explain what line balancing is and how the technique is used as part of designing flexible- flow layouts.

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Question 12

Balance the assembly line using the information below, and the longest work- element time rule. The desired output is 240 units per day. Available production time per day is 480 minutes. What is the efficiency for the balanced assembly line?

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Question 13

Identify and briefly explain four of the dominant factors that influence location decisions for new manufacturing facilities.

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Question 14

A firm of six departments has the following trip matrix and current block plan of all departments: $$\begin{array}{l}
\begin{array} { | l | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Dept } \
\text { Name }
\end{array} & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\hline \text { A } & - & 7 & 8 & 9 & 0 & 2 \
\hline B & & - & 6 & 3 & 0 & 10 \
\hline C & & & - & 2 & 12 & 0 \
\hline D & & & & - & 3 & 0 \
\hline \text { E } & & & & & - & 6 \
\hline \text { A } & & & & & & - \
\hline
\end{array}\
\begin{array} { | l | l | l | } 
\hline \mathrm { A } & \mathrm { B } & \mathrm { C } \
\hline \mathrm { D } & \mathrm { E } & \mathrm { F } \
\hline
\end{array}
\end{array}$$
a. What is the load- distance score for the current layout? (Assume rectilinear distance and that the distance between departments A and B is one unit of distance.)
b. What would be the load- distance score for the following layout? $$\begin{array} { | l | l | l | } 
\hline A & C & E \
\hline \mathrm { D } & \mathrm { B } & \mathrm { F } \
\hline
\end{array}$$

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Question 15

Balance the assembly line using the information below, and the longest work- element time rule. The desired output is 360 units per day. Available production time per day is 480 minutes. What is the efficiency for the balanced assembly line? $$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Work } \
\text { Element }
\end{array} & \begin{array} { l } 
\text { Time } \
\text { (sec) }
\end{array} & \text { Immediate } \
\hline \text { A } & 30 & - \
\text { B } & 20 & \text { A } \
\text { C } & 50 & \text { A } \
\text { D } & 45 & \text { B } \
& 30 & - \
\hline & 20 & \text { A A B B } \
\text { E F G H } & 50 & \text { C } , \text { D } \
& 45 & \text { D } \text { E } \
& 30 & \
& 55 & \
& 35 & \
\hline
\end{array}$$ $$72$$

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Question 16

A company has determined the "demand points" and their relative locations as follows: $$\begin{array} { | l | l | l | c | } 
\hline \text { Demand Points } & X \text {-Coordinate } & Y \text {-Coordinate } & \text { Load } \
\hline \text { A } & 12 & 15 & 1000 \
\mathrm {~B} & 22 & 9 & 450 \
\mathrm { C } & 16 & 14 & 750 \
\mathrm { D } & 14 & 15 & 550 \
\hline
\end{array}$$ a. If a company desires to locate a manufacturing facility at the center of gravity, what would be the x- and y- coordinates of the facility?
b. If a facility were to be located at (15, 15), what would be the load- distance score? (Assume rectilinear distance)
c. If a facility were to be located at (15, 15), what would be the load- distance score? (Assume Euclidean distance)

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Quiz 10: Location and Layout

What are four major questions that must be addressed as part of a layout planning effort?

Explain the concept of critical mass as it applies to location decisions for service providers. Within your response, include at least one example of a service industry where critical mass is a dominant factor in location decisions.

Explain the distinction between facilities that are based on flexible- flow layouts and fixed- position layouts.

Briefly explain the series of steps typically followed in the process of selecting a new facility location from several possible sites.

Explain the distinction between the use of heuristics, simulation, or optimization as analytical procedures to support location decisions.

Explain what line balancing is and how the technique is used as part of designing flexible- flow layouts.

Balance the assembly line using the information below, and the longest work- element time rule. The desired output is 240 units per day. Available production time per day is 480 minutes. What is the efficiency for the balanced assembly line?

Identify and briefly explain four of the dominant factors that influence location decisions for new manufacturing facilities.