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# Problem 8-2

The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She
has studied three locations. Each would have the same labor and materials costs (food, serving
containers, napkins, etc.) of \$1.80 per sandwich. Sandwiches sell for \$2.59 each in all locations. Rent
and equipment costs would be \$5,080 per month for location A, \$5,600 per month for location B, and
\$5,780 per month for location C.
a. Determine the volume necessary at each location to realize a monthly profit of \$10,000. (Do not
Location

Monthly Volume

A
B
C

b-1. If expected sales at A, B, and C are 20,300 per month, 22,900 per month, and 23,400 per month,
Location
A

Monthly Profits
\$
\$

B

\$

C

b-2. Which location would yield the greatest profits?
Location A
Location B
Location C

Problem 8-9
Location Score
Factor
(100 points each)
Convenience

Weight
.15

A
87

B
72

C
69

A B C Problem 8-12 A toy manufacturer produces toys in five locations throughout the country. Raw materials (primarily barrels of powdered plastic) will be shipped from a new. Round your final answers to 2 decimal places. (Do not round intermediate calculations. A coordinate system has been established.10 .20 .) Location A B C D E (x.) Location Composite Score A B C b.4 . centralized warehouse whose location is to be determined.7 8. B. Determine which location alternative (A. (Round and to 1 decimal place. or C) should be chosen on the basis of maximum composite score. The monthly quantities to be shipped to each location are the same.3 4.y) 4. and the coordinates of each location have been determined as shown.6 4. calculate the composite score for each location.Parking facilities Display area Shopper traffic Operating costs Neighborhood .1 6.27 . Using the above factor ratings.10 82 88 94 96 93 85 92 90 86 91 97 92 84 91 83 1.00 a. Determine the coordinates of the centralized warehouse.18 .

= . = . .