1. The Speedy Ambulance Service is searching for a location that will serve both as it headquarters and as a garage for its ambulances. You have been asked to chair the site selection search team. The team has identified the following factors that need to be considered in choosing a location, and also has assigned the following weights to these factors
The search team has found three sites and has assigned the following factor ratings to
each of them:
a. Which site would you recommend to the search committee?
b. What is the impact on the site selection if the weight of the "access to major highways" factor is reduced to 5 and the weight of the "local tax incentives" factor is increased to 20?
2. Edtoys.com is a virtual company that offers a wide variety of educational children's toys through its website. When an order is received. it is immediately sent electronically to the manufacturer for direct shipment to the customer. With this type of structure. Edtoys.com does not have to maintain inventories of toys or become involved in their delivery. Management is therefore focusing primarily on making its website as customer friendly as possible and expanding its number of product offerings. Edtoys.com has seen tremendous growth in the past several years and needs to find a new and larger location for its offices. Based on conversations with several members of Edtoys.com's top management team a consulting firm has identified the following factors that should be taken into consideration in choosing a new site for its offices and also has assigned the following weights to each of these factors:
Facility Decisions: Location and Capacity 315
The consulting firm has identified two possible locations and has assigned each of them the following factor ratings:
Which site should the consulting firm recommend to Edtoys.com?
3. Patorano's Pizza, -a chain of Italian pizza restaurants, wants to expand its operations into Asia, specifically in the Peoples' Republic of China (PRC). Unfortunately, due to a lack of food purveyors and suppliers, management must build its own distribution center and commissary, where many of the foods used in the restaurant will be either partially or fully prepared. (For example, the dough for the pizza will be mixed and portioned at the commissary.) The first stage of its business plan has identified specific locations for the first three restaurants to be opened. The X and Y coordinates and estimated annual sales for each of these three locations are presented below:
a. Draw a grid map and locate each of the planned restaurants on it.
b. Assuming that the volume of products to be shipped is directly proportional to sales, calculate the coordinates for the central commissary that will minimize distribution costs. Plot these coordinates on the grid map.
c. The second phase of the business plan calls for two more locations at the following grid locations and with estimated sales shown below:
What is the impact of these additional restaurants on the location of the central
4. Jane's Office Supplies is a small retail chain that sells high-priced designer office supplies to senior executives. It has recently opened three locations in the metropolitan Washington, DC, area that are currently being supplied from the corporate warehouse in Dallas, Texas. The X and Y coordinates for these locations are provided in the table below along with the annual sales that each location generates. In order to reduce shipping costs, management has decided to open a distribution center in the Washington DC, area.
a. Draw a grid map and locate each of the three stores on it.
b. Assuming that the volume of products to be shipped is directly proportional to sales
in each store, calculate the coordinates for the distribution center that will minimize
distribution costs. Plot these coordinates on the grid map.
5. Having determined the optimal location for its distribution