BUS 364 Supply Chain Management
BUS 364 Supply Chain Management
Chapter 15: Location Decisions
Directions: Using the provided data, answer all the questions. SHOW ALL YOUR WORK. Upload a copy (Word, PDF, or Excel) or a photo (GIF or JPG) to the drop box in Brightspace by the due date.
Cost-Volume Profit Analysis
- Dr. Mathien is looking to put a fourth warehouse location (she has three now). There are three potential locations with the following associated fixed and variable costs.
- Calculate the total cost/month for each of the three locations. (6 points)
- Which location should be chosen? Explain why? (2 points)
- Dr. Mathien also wants to evaluate the three locations using a weighted factor analysis. She determines the following factors, their weights, and gives each a score.
- Calculate the weighted score for each location/factor combination (12 points).
- Calculate the total weighted score for each location (3 points).
- Which location should be chosen? Explain why? (2 points)
- Dr. Mathien has the following locations:
- Calculate the X coordinate for the new location (2 points).
- Calculate the Y coordinate for the new location (2 points).
- Graph all five locations on a graph and label each location (5 points).
|
Location |
Fixed cost/month |
Variable cost/unit |
Total cost/month |
|
Charlotte, NC |
$4000 |
$4 |
|
|
Atlanta, GA |
3500 |
$5 |
|
|
Columbia, SC |
5000 |
$6 |
Weighted Factor Analysis
|
Factor |
Weight |
Charlotte |
Charlotte weighted |
Atlanta |
Atlanta weighted |
Columbia |
Columbia weighted |
|
Labor cost |
50 |
20 |
40 |
50 |
|||
|
Material cost |
30 |
10 |
30 |
10 |
|||
|
Transportation cost |
20 |
50 |
10 |
10 |
|||
|
TOTALS |
|
|
|
|
|
|
|
Center of Gravity Method
|
Destination |
X Coordinate |
Y Coordinate |
Weekly Demand |
|
Loc A |
3 |
5 |
20 |
|
Loc B |
6 |
8 |
10 |
|
Loc C |
2 |
7 |
15 |
|
Loc D |
4 |
5 |
15 |
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