Find which city provides the lowest overall costs, Operation Management

Assignment Help:

Kelly Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual Fixed Costs Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs?


Related Discussions:- Find which city provides the lowest overall costs

Define a swot analysis for the company, Write an eight to ten (8-10) page p...

Write an eight to ten (8-10) page paper in which you 1. Determine the impact of the companys mission, vision, and primary stakeholders on its overall success. 2. Analyze the

Hard, Ask quesThe Delicious Apple Company has orchards in Red City, Golden,...

Ask quesThe Delicious Apple Company has orchards in Red City, Golden, and Macville Estimated amounts of apples to be available from the three orchards are the following: Red City

Industrial policy, Industrial Policy The course of action set by the go...

Industrial Policy The course of action set by the government to influence the development of domestic industrial sectors in particular and the direction of the national organiz

Explain what are america''s and today''s workers, What are America's and to...

What are America's and today's workers view of the labor unions?

Explain elements necessary for the formation of a business, What are the th...

What are the three elements necessary for the formation of a business contract? What are the six defences to formation of a contract? Illustrate your definitions with examples of e

Advantages of production planning and control, Advantages of Production Pla...

Advantages of Production Planning and Control 1. Higher productivity: The productivity can be improved by taking care of production methods and time. 2. Removal of Hurdles

Explain how much of an impact does maturity, 1. How much of an impact does ...

1. How much of an impact does "maturity" level of the industry or company have on strategy? 2. Can you be innovative in a mature industry? 3. Can you be conservative in an in

Explain mechanistic or organic organization, Does Mr. Goodnight want to cre...

Does Mr. Goodnight want to create more of a mechanistic or organic organization? Explain

Define how you might take production line approach, Q1: Explain how you mig...

Q1: Explain how you might take production line approach (transferring the concepts and methodologies of operations management) to a service organization such as a branch bank. Q

Explain how does the pursuit of outsourcing align, Should Galanz continue t...

Should Galanz continue to expand its capacity through outsourcing arrangements? How does the Pursuit of outsourcing align with its operations strategy?

Write Your Message!

Captcha
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