weight maitland baptist northside hill maitland baptist northside hill

Space 0.2 60 70 80 12 14 16
Costs 0.25 40 80 30 10 20 7.5
Traffic density 0.3 50 80 60 15 24 18
neigh income 0.15 50 70 40 7.5 10.5 6
zoning laws 0.1 80 20 90 8 2 9
52.5 70.5 56.5
x-coordinate = Summation(x(i)Q(i))/Summation(Q(i))

y-coordinate = Summation(y(i)Q(i))/Summation(Q(i))

Store Location
Chicago
y
140 Pittsburgh
New York
120 Chicago New York
Pitts
100 Ohio - New Atlanta
80
Location

60 New Location
40 Atlanta
20

0
20 40 60 80 100 120 140
# of containers shipped per month (Q) x y x*Q y*Q
2,000 30 120 60000 240000

1000 90 110 90000 110000

1000 130 130 130000 130000

2000 60 40 120000 80000
6,000 66.67 93.33

66.66667 93.33333
3 locations:
Selling Price 120 $
expected Volume 2000

Location Fixed Price Price/unit TC

Athens 30,000 75 180000 TC= Fixed Cost + # of units*cost/unit
Brussels 60,000 45 150000
Lisbon 110000 25 160000

Crossover Points:
Athens vs. Brussels Athens vs. Lisbon - crossover point
1600
30000+75*x = 60000+45*x
75*x-45*x = 30000
30x = 30000
x = 1000

Brussel vs. Lisbon

x = 2,500

Expected Profit
for 2000 units, selling price is 120 = 240000
Athens
Profit = 60000
Brussels = 90000 Maximum Profit, Brussels should be chosen
Lisbon = 80000
 180k
If you want to produce units
between 0-1300, choose
athens as location

140k If you want to produce units

between less than 2000,
choose Brussels as location

Lisbon 110000 If you want to produce units

between greater than 2000,
choose Lisbon as location
90000

fixed cost
Brussels 60000

Athens 30000

10,000
1000 1500 2000 2500
# of units
nt to produce units
0-1300, choose
location

nt to produce units
ess than 2000,
ussels as location

nt to produce units
greater than 2000,
sbon as location
3 locations:
Selling Price 120 $
expected Volume 2000

Location Fixed Price Price/unit Total Cost

Athens 30,000 75 180000 TC= fixed cost + # of units*per unit cost
Brussels 60,000 45 150000
Lisbon 110000 25 160000

Crossover points by comparing equations

For Athens vs. Brussels For Athens vs. Lisbon
30000+75*x = 60000+45*x
30x = 30000
x = 1000

For Brussels vs. Lisbon

60000+45*x = 110000+25*x
20x = 50000
x = 2500

Total Profit (Athens) = 60000

Total Profit (Brussels) = 90000 Location for 2000 volume
Total Profit (Lisbon) = 80000
 180k

150k

Lisbon
110k

90k

Brussels
60k

Athens
30k

1000 1500 2000 2500 3000

1200 1700 >2500