Question: 1) Discuss the process (steps involved) involved in making location choice decision assuming a multinational corporation which has to funnel down from country choice to

1) Discuss the process (steps involved) involved
1) Discuss the process (steps involved) involved in making location choice decision assuming a multinational corporation which has to funnel down from country choice to specific site choice. (30points) 2) 42. A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit. (A) Which alternative would yield the higher profit for an annual demand of 3,000 units? ( 15 points) (B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be? (15 points) 3) Given the information below on scores of three location alternatives, which alternative would you recommend? Why? (20points) Location Factor Raw Materials 80 70 Market Transportation Cost Labor Cost 70 Construction Cost + 2 1 2 1 70 70 80 80 80 SO 50 60 4) Determine the center of gravity location for the destinations and shipping quantities shown below: (20 points) Destination DI D2 D3 D4 5.1 6.7 8.4 600 200 300 500

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