SHANXI UNIVERSITY OF FINANCE AND ECONOMICS

ASSIGNMENT: OPERATIONS MANAGEMENT

SUBMITTED BY: MARYAM ALI KAZMI (穆蕊)

(MBA 2020)
QUESTION 13:

A clothing manufacturer produces women’s clothes at four locations in Mexico. Relative

locations have been determined, as shown in the table below. The location of a central shipping
point for bolts of cloth must now be determined. Weekly quantities to be shipped to each
location are also shown in the table. Determine the coordinates of the location that will minimize
distribution costs.
Location (x, y) Weekly Quantity

A 5, 7 15
B 6, 9 20
C 3, 9 25
D 9, 4 30

ANSWER:

X=Xi

Y=Yi

Σ Yi*Qi = 5(15) + 6(20) + 3(25) + 9(30)

Σ Qi 15 + 20 + 25 + 30

= 540
90
X = 6.0

Σ Yi*Qi = 7(15) + 9(20) + 9(25) + 4(30)

Σ Qi 15 + 20 + 25 + 30
= 630
90
Y = 7.0
From above calculation we found that the following coordinates of the location will minimize
distribution cost:
X, Y = 6, 7
CASE STUDY: HELLO WALMART

Owners of small businesses located nearby

 Pro's
 This will make the owners of small businesses more competitive and try to look for new
products marketing technique.
 They have to improve customer service and satisfaction.
 Customers can be comfortable and loyal in purchasing local products to support their
community.
 Improve the surrounding economy, as it provided employment to hundreds of workers,
who normally immigrated to other places.
 Wal-Mart and stores such as these add to the quality of life in large and small
communities as they provide consumer choices that would otherwise not be available.
 Cons
 Many small businesses will not be able to compete with Walmart prices because Walmart
have many products sourced directly from other countries with low production costs.
 Small businesses will not be able to provide a wide range of products that make Walmart
very attractive to new customers.
 Bankruptcy of small businesses can occur when they cannot attract the customer.
 Walmart existence disruptive to small business.
 The Cost of Wal-Mart's entry into a community can be significant.

Town residents, and residents of nearby towns

 Pro’s
 Town residents will be able to shop for everything they need at Walmart and not need to
stop.
 Walmart will require shops to become more competitive in their prices thereby products
will be cheaper.
 Walmart will need to hire employees for their new store, seeking town residents and
nearby towns to work for them.
 Customer service will be increased to achieve customer loyalty.
  When a new Walmart store is built, its location immediately attracts additional
businesses.
 Cons
 There will be an increase in traffic as well as construction for the new Walmart store,
which will lead to traffic jams.
 Walmart is known for its low regard for its employees and its sole purpose is to see for
itself.
 Walmart has been charged of un-environmentally friendly operations
 Walmart has a background of hiring illegal and undocumented people after hours for
cleaning work. Has disputed claims of racial and gender discrimination.

When responding to negative criticism a Walmart representative will stick to the following
statement: “We are a worldwide company that seeks customer satisfaction by providing a wide
range of products to meet customer needs. We are creating employment opportunities for the
community by opening a new Walmart franchise. Walmart will also offer good-paying jobs with
benefits. Walmart will have a wide parking lot to meet customer expectations while not
disrupting traffic or causing traffic jams. "

When talking to the board, Walmart will offer competitive prices on representative products,
making it very attractive to the board. Walmart will attract new infrastructure development of the
city, along with new investment from other businesses coming into the city. New jobs will be
created to run new franchises, so that people from the community can be hired.