A company sells from four store locations the coordinates and demands of those store are: Coordinate...

   

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A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) demand =6000 Coordinate (40,20) demand =8000 Coordinate (80,30) demand =9000 Coordinate (70,25) demand =5000 What location would you recommend for opening a distribution center for these stores using COG method? ● ● ● b) A company is considering three city locations to set-up a plant. TOLLO I. II. III. ● ● Location A has an initial investment of $3,000,000 but the production variable cost of $60 per unit. Location B has an initial investment of $4,000,000 and a variable cost of $45 per unit. Location C has an initial investment of $6,000,000 and a variable cost of $25 per unit. The management would like to know over what range of production volume each location is cost-effective. Plot the total cost lines with free hand. They would also like to know when to shift from one location to another if the demand keeps on growing. IV. If they plan to produce 150,000 units which location is the best in terms of cost? A company sells from four store locations the coordinates and demands of those store are: Coordinate (7,9) demand =6000 Coordinate (40,20) demand =8000 Coordinate (80,30) demand =9000 Coordinate (70,25) demand =5000 What location would you recommend for opening a distribution center for these stores using COG method? ● ● ● b) A company is considering three city locations to set-up a plant. TOLLO I. II. III. ● ● Location A has an initial investment of $3,000,000 but the production variable cost of $60 per unit. Location B has an initial investment of $4,000,000 and a variable cost of $45 per unit. Location C has an initial investment of $6,000,000 and a variable cost of $25 per unit. The management would like to know over what range of production volume each location is cost-effective. Plot the total cost lines with free hand. They would also like to know when to shift from one location to another if the demand keeps on growing. IV. If they plan to produce 150,000 units which location is the best in terms of cost?

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To determine the best location for opening a distribution center using the Center of Gravity COG met... View the full answer