Sales volume because customers tend to favor local suppliers

Assignment Help Operation Management
Reference no: EM132234332

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers.

Revenue per unit will be $190 in either case. Omaha Kansas City Annual fixed costs ($ millions)

$ 1.1 $ 1.0 Variable cost per unit $ 40 $ 55 Expected annual demand (units) 10,400 11,000 Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.) would produce the greater gross profit of $.

Reference no: EM132234332

Long life insurance has developed a linear

Long Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the he

How many parts are produced per shift

Suppose an operator is assigned three machines, the work shift begins at 8a.m., a 15-minute break occurs at 9:45a.m., a 30-minute lunch break occurs at 11:45a.m., a 15-minute

For project that must deliver tangible product

For a project that must deliver a tangible product, using phases might not be the best way to divide the production process. Work on the different sub-components can take plac

Utilize when hiring a regular employee

Select two (2) decision-making methods that you would utilize when hiring a regular employee. Specify the main reason why the selected methods would apply to managers and regu

During the last off-site strategic planning meeting

A machine shop has not upgraded its equipment in over ten years and is finding that it cannot compete with other shops in its industry. During the last off-site strategic plan

Unfamiliar with many marketing research issues

Assume you are a new hire at company and your boss is unfamiliar with many marketing research issues. Your boss believes that only secondary date (e.g., sales volumes) should

Developing a knowledge strategy

Review the Zach article, "Developing a Knowledge Strategy". It is said that the only sustainable competitive advantage that a firm has is the speed with which it learns. Knowl

Regardless of what alternative the company implements

Expando, Inc. is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering th

Reviews

Write a Review

 
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