Determine the center of gravity

Assignment Help Operation Management

Reference no: EM131853354

Location Cost Volume Analysis

Location	Fixed Cost per Year	Variable Cost per Unit
A	$250,000	$11
B	100,000	30
C	150,000	20
D	200,000	35

Give the above information

Identify the range of output for which each alternative is superior (i.e. has the lowest total cost)

If the expected output at the selected location is to be 8,000 units per year, which location would provide the lowest total cost

Factor Rating/Scoring

A CD vending business intends to open a new branch store. The following table provides information on two competing locations.

Which alternative is better?

		Scores (Out of 100)
Factor	Weight	Alt 1	Alt 2
Proximity to existing store	.10	100	60
Traffic volume	.05	80	80
Rental costs	.40	70	90
Size	.10	86	92
Layout	.20	40	70
Operating costs	.15	80	90

Center of Gravity

Given the following shipping information determine the center of gravity

Destination	X	Y	Weekly Quantity
D1	2	2	800
D2	3	5	900
D3	5	4	200
D4	8	5	100
			2,000

Reference no: EM131853354

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