Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed i. and variable costs for the three alternative locations are presented in the table below. Table 4 Costs A C Fixed Costs ($) 700,000 1, 000,000 1,100,000 Variable ($ per unit) 28 20 18 a. Identify the range over which each alternative (A, B and C) is best.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Sap Manufacturing, a manufacturing company that manufactures football jerseys and
located in Port Antonio, Jamaica, is preparing to build a new plant. J's is considering
three potential locations that are suitable for the construction of the plant. The fixed
i.
and
variable costs for the three alternative locations are presented in the table below.
Table 4
Costs
A
В
C
1, 000,000
Fixed Costs ($)
Variable ($ per unit)
700,000
1,100,000
28
20
18
a. Identify the range over which each alternative (A, B and C) is best.
Transcribed Image Text:Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J's is considering three potential locations that are suitable for the construction of the plant. The fixed i. and variable costs for the three alternative locations are presented in the table below. Table 4 Costs A В C 1, 000,000 Fixed Costs ($) Variable ($ per unit) 700,000 1,100,000 28 20 18 a. Identify the range over which each alternative (A, B and C) is best.
ii.
A manufacturing firm is considering three potential locations for a new parts
manufacturing facility. A consulting firm has assessed three sites based on the four
factors supplied by management as critical to the location's success. The factor
weights and the consultant team scores are given in table 5 below. Scores are based on
50 = best.
Table 5
Location
Factors
Weights
А
B
Labor Climate
10
35
45
20
Таxes
30
30
40
40
Utilities
20
25
20
45
Wages
40
10
25
25
a. Which location should be selected?
ii.
Describe two factors that will affect the location decision of a supermarket and explain
why these factors are important to the decision.
Transcribed Image Text:ii. A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. The factor weights and the consultant team scores are given in table 5 below. Scores are based on 50 = best. Table 5 Location Factors Weights А B Labor Climate 10 35 45 20 Таxes 30 30 40 40 Utilities 20 25 20 45 Wages 40 10 25 25 a. Which location should be selected? ii. Describe two factors that will affect the location decision of a supermarket and explain why these factors are important to the decision.
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