# 1. From my point of view I can say that convenience and comfort it is to same.

I think that we can replace comfort by availability. Availability of: communication( roads), necessary resource as a water,energy, system of communication etc. We can add one more important thing, it is a ‘outlet’ that means how many people will be coming on the metches-it is depends on localization and eventually costs of transport. 2. First option: Fixed cost= 1mln \$ Variable cost 1\$ per attendee Annual cost for an expected volume of 375 000= 375 000 + 1000000= 1 375 000\$ Second option: Fixed cost= 5 mln \$ Variable cost 2\$ per attendee Annual cost for an expected volume of 375 000 = 5 000000\$ + (2* 375 000)= 5 750 000\$ Third option: Fixed cost= 1 mln \$ per year Variable cost 10\$ per each of 15 000 students tickets sold for each game TVC= 10*15000*5 ---------------- = 2\$ per attendee 375 000 Annual cost for expected volume of 375 000 = 1 mln + 2*375 000= 1750 000

Forecasts show that numbers of attendee will increase to 75 000 per game( we have 5 game each season so 75 000* 5= 375 000 per year) Chart chows that for this number of attendee we have to choose first option 1

4. I recommended location A that mean the old stadium should be reconstruceted and should be bigger and should have new facilities. My justyfication is based on forecasts.Stadium after the reconstruction will improve necessary quantity of siting place. Stadium will be modern and comfortable as a supporters want. The team will be feel freer playing at home at them own 2

5. Gardner used Factor Roating Method which contains of fallowing steps: 1. list relevant factors 2. assign importance weight to each factor (0-1) 3. develop scale for each factor (1-6) 4. score each location using factor scale 5. multiply scores by weights for each factor and total 6. select location weith maximum total score The results are shown in the table below: Students rating of location Factors convenience Guaranted avaliaibility Comfort costs National image First option 6 4 5 6 3 Second option 5 3 6 3 5 Third option 1 6 6 5 5

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Booster’s ration of location Factors convenience Guaranted avaliaibility Comfort costs National image First option 3 5 4 6 4 Second option 3 4 5 4 4 Third option 6 6 6 6 5

College staff rotation of location Factors convenience Guaranted avaliaibility Comfort costs National image First option 5 6 4 6 5 Second option 4 4 6 3 5 Third option 3 6 5 5 4

Factor Concenience Guranted avaliability Comfort Costs National image

Weight for each factor 0.5 1 0.25 1 0.25

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When we multipling scores by weights for each factor we get: First option 46.25 Second option 34.75 Third option 46.75 This method shows that we should rent the stadion from Dallas Cowboys. However expending the existing stadion also seems to be a good idea.

6. Besides the factor rating method and locational break –even analysis wchich was used in our homework we know other methods as a:

center of gravity method
Finds location of single distribution center serving several destinations - Used primarily for services - Considers - Location of existing destinations - Example: Markets, retailers etc. - Volume to be shipped - Shipping distance (or cost) - Shipping cost/unit/mile is constant - Place existing locations on a coordinate grid o Grid has arbitrary origin & scale o Maintains relative distances - Calculate X & Y coordinates for ‘center of gravity’ o Gives location of distribution center o Minimizes transportation cost Center of Gravity Method Equations X Coordinate
∑ d ix Wi
i

Cx =

∑ Wi
i

dix

= x coordinate of location i 5

Wi diy Y Coordinate

=Volume of goods moved to or from location i = y coordinate of location i

Cy =

∑ d iy Wi
i

∑ Wi
i

Coordinate Locations of Four Quain’s Department Stores and the Center of Gravity

the transportation method
♦ Finds amount to be shipped from several sources to several destinations ♦ Used primarily for industrial locations ♦ Type of linear programming model -Objective: Minimize total production & shipping costs -Constraints *Production capacity at source (factory) *Demand requirement at destination

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