Which location would result in the lowest total cost

Assignment Help Operation Management
Reference no: EM132746115

A fish farms owner in Abu Dhabi, UAE is seeking a fifth farm location to meet the increasing demand for fish. There are three potential locations: Fujairah, Oman, Umm al Quain all three located along the coast of the state of UAE. Fujairah would involve a fixed cost of $2,000 per month and a variable cost of $4 per kilogram (kg); Oman would involve a fixed cost of $2,500 per month and a variable cost of $3 per kg; and Umm al Quain would involve a fixed cost of $3,000 per month and a variable cost of $3.50 per kg. Use of Fujairah location would increase the system transportation costs by $21,000 per month, Oman by $17,000 per month, and Umm al Quain by $16,000 per month. Which location would result in the lowest total cost to handle 4000 kg of shrimp per month? Show by calculation

Reference no: EM132746115

Questions Cloud

Lean management and 6s for housekeeping : Lean Management and 6S for housekeeping in a factory setting
Does Maple Inc need to record impairment for this furniture : Does Maple Inc. need to record an impairment for this furniture? If so, show your work to explain why and provide the journal entry for the impairment
Explain the input and output of the diagram : Explain the input and output of the diagram in material requirement planning
The approaches to organizational design : The approaches to organizational design. Analyze the effects and applications of the various organizational structures and levels of authority
Which location would result in the lowest total cost : A fish farms owner in Abu Dhabi, UAE is seeking a fifth farm location to meet the increasing demand for fish. There are three potential locations
How should allocate principal residence gain reduction : During the 5 years from 2014 to 2018. How should she allocate her principal residence gain reduction for the year 2014 to minimize her 2018 taxable capital gain
Impact of downsizing in an organization : Give your own opinion about downsizing and discuss the impact of downsizing in an organization.
Discusses release of information : Compare the services of 3-4 ROI companies based on similar criteria; such as cost, turnaround time for release of records, etc.
Understanding of the input and output : Explain your understanding of the input and output in material requirement planning

Reviews

Write a Review

Operation Management Questions & Answers

  Many costs as a massive layoff

Imagine you work for a low-tech company that is not experiencing any market growth. The company is thinking of laying off 40% of its employees as a way to cut costs. Which of the following might save as many costs as a massive layoff?

  Level vs chase production plan

In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?

  Joint venture of north american mattress manufacturers

Sealy, Inc. was a joint venture of North American mattress manufacturers.

  Involvement in inappropriate office activities

Involvement in inappropriate office activities. Develop five scenarios where employees should not engage in the workforce.

  What are the key elements of the business model to consider

Identify a meaningful measure of performance for Amazon. What are the key elements of the business model to consider?

  What is jdvs marketing strategy to promote good hotel

What is JdV’s marketing strategy to promote Good Hotel? Is this strategy sufficient?

  What is the break-even value for the overhead rate

What is the break-even value for the overhead rate (dollars per direct labor hour)?

  Concern when developing facility management philosophy

Compare and contrast distributive bargaining and mutual gain bargaining. What is meant by the term third party relationship? What is always the first concern when developing a facility management philosophy?

  Generate direct cost savings estimate due to the training

Training can also impact the bottom line by reducing a number of direct costs. For example, employee costs may be reduced because fewer overtime hours will be needed because of improved performance. Also assume that you can expect a 10- percent reduc..

  Human resource management is growing in the hospitality

Human Resource Management is growing in the hospitality industry. Our industry is growing in diversity and unions are diminished. The HR department plays a big role in the overall success of the hospitality operation. List some important functions of..

  Why do different countries differ in their IP laws

In other words, where do these numbers come from? Finally, why do different countries differ in their IP laws?

  Who is responsible for the information security plan

Our town medical center has hired a new chief information officer who is responsible for the information security plan.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd