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    Plant Location Exercises

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    282, 12:13PM PLANT LOCATION Mol (tips. widomiobs.com/) ‘Search for Jobs. In Production and Operations Management Tutorial 24 February 2022 - Learn PLANT LOCATION PLANT LOCATION MODELS - PRODISCTION AND OPERATIONS MANAGEMENT «Previous Topies s-Location Theories (pntpsutwww wisdomobs conve niversity/productior-andoperaions: ‘management“utoria298/location theories 9459 htm) ‘Factors ivfuencing Plant Locaton/faclty Location (tps ww wisdomabs conve- unversity/productionand operations: ‘managementutoria:298/factor-nfueneng Plantocation-facltylocation 456. htmi) ‘G-Need For Selecting A Sutabe Location (tttas/w wicdomobs.com/e praucton And peat 'C-Loceypanbennehtiterview Cote laaeaanpris ae coc RE Mert core esr NOTES SH ate eae lnegemenrterion- Paton teperewnaconeon aa crierenoaebaione ceuteppaanunren oes 28S ANRIEREATPHDDce 1G ClasTPEltion Of Layout, Next To university /praductor-and operations (ortos Ane aaerysesemiabs.com/e- management 6 2 3 5 a9 » ‘ F ce) 2 2 ° 0.23) " SOLUTION: Calculate the loed-ltance score foreach lection. Using the coordinates from the above table calculate the load-distance score for eech tact Using the formula Dag = Bx Xa + Ma~Yal Coe] @) [pine | eee | bee | mer 0 [Bam | teak | Dame | Tae x [ese] 2 | ore=3 6 | aast] ow | c | os) 0 ° © pica | 7 a i ze] es | > 2 ria] 2 » ° o | en | 7 » ‘Summing the scores forall tracts give a total load stance score of 239 when the ‘citys located at versus a loaesistance score of 168 at locaton (7,2). Therefore, ‘he locaton in census tract Fis abetter locaton, contre of Gravy ‘Centre of gravity is based primary on cost considerations. This method ean be used to assist manager in balancing cost and service objectives. The centre of gravity method takes nto account the locations of plants anid motets, the vlume of goods moved, and transportation costs In anving atthe best action fora single termediate warehouse ‘The centre of gravy is defined to be the loction that minimizes the welghtes distance between the warehouse and its supply and dstributon points, where the stance is ‘weighted by the numberof tones supplied or consumed. The fst stp in this procedure ito place the locations ona coordinate system, The origin ofthe coordinate system and scale used are arblrary,just 38 lg asthe relate dstances are comely represented, This canbe easly done by placing a gid over an orinary ‘map. The centre of gravity is determined bythe formula. (x= FD, MEW) and Cy FD, W/E) ere C,= xovordinate ofthe centre of gravity y= Povordinate ofthe cente of gravity ig= Honore of location y= peoorinate of location i tps ww. wisdomjobs.con/e-universilypoduction-and-operations-management-iora+-29Socaton-models-9476.himl ano 282, 12:13PM PLANT LOCATION MODELS in Production and Operations Management Tutorial 24 February 2022 - Learn PLANT LOCATION census tact centre sto the new fcity when they need heath care. Two locations being considered forthe new fact reat (5 5 4.5) and (7,2) which are the centers of concus tracts Cand F Detals of seven census act centers, coordinate distances ‘along withthe population foreach centre are given below Find the target areas centre oferty forthe Heath care medical faci. wm | Gnas ba =n Pepa T a ea A 2 5 e325, 5 a e 6505, 2 4 > 63 7 3 F a » ‘ r om > @ 0.25) # ‘SOLUTION: To-cleuate the cette of gravy start with the following infomation, where population 's gvenin thousands =| oa | en | ae | = |e 7 a aaa) z se 2 > 0525, 5 ps] as 3 © 6343) ” s | 4 > 6 sf] 5 z a » » | 2 . 5 a > w | © 2 @ e239 # we | is Next we find Gx and Cy 0 458.5/68= 6.67 = 205.5/68=3.02 The conve of gratis (6 67, 3.02). Using the conte of gravity as stating pont, ‘managers an now search in ite vty fr the apn eatin, Break Even Analysis ‘5reak even analysis implies that at some point nthe operations, otal revenue equals total cost. reak even analysis is concerned with ning the pinta which revenues and costs agree exactly Iti called Breakceven Point. The Fig. 2:3 portrays the Break Even Chart: Break even points the volume of output at which neither a profits made nor lss is ncurted, The Break Even Point (8EP) in units can be caleulated by using the relation: ep xed Cost Contribution per unit Fixes Cost Seling Price Variable Cost pr unit htpswowisdomjobs.con/e-universilypoduction-and-operations-management-iora+-29Socaton-models-9476.Niml sno 282, 12:13PM PLANT LOCATION MODELS in Production and Operations Management Tutorial 24 February 2022 - Learn PLANT LOCATION Fed Cost evra Units of ouput or percentage of capacity n= tl ES a Potting the break even chart foreach location can make economic comparisons of locations. Ths willbe hepflinienttying the range of production volume over which location canbe selected ILLUSTRATION 5: Potential locations X Yand Z have the cost structures shown below. The ABC company has a demand of 130,000 units of a new product. Thre potenti locations X Y and Z having folowing cost structures shown are available. Select which locations to-be selected and also identi the volume ranges where each cation fe sulted? ‘soLuTion: ‘Soke forthe crossoverbetween X and: +10X+ 150,000 = 8x + 350,000 2x = 200,000 x = 100,000 units ‘Soke fr the crossoverbetween Vand 2: {8X + 350,000 = 6x + 950,000 2x = 600,000 x = 200,000 units ‘Therefore, ta volume of 130,000 unit, Vis the appropriate strategy. From te graph ‘we can interpret that locaton X issuable upto 100,000 units, locaton Y is sultable up te between 100,000 te 300,000 unts and location 2is sutabl ifthe demand is more than 290000 units. EP chart htpsswww.wisdomjobs.con/e-universlyipoduction-and-operalions-management-iora+-29Sfocaton-models-9476.Niml eno 282, 12:13PM PLANT LOCATION MODELS in Production and Operations Management Tutorial 24 February 2022 - Learn PLANT LOCATION «Previous Topies ‘Location Theories (pitas idem come university production-and operations: ‘management

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