Answer using Excel

Location Decisions Problem Statement As the operations manager of Ricardo Inc, manufacturer of gas grills in Central Ohio, you have to decide where your next will be. The three (3) alternative locations that you have to choose from are; China, India, and Russia. You want to have t different approaches in this analysis; first one is solely cost based (break-even analysis) and the second one is multi criter weighted scoring. Please read the information below and answer the questions. 1. The fixed and unit variable costs for each of the three locations have been estimated and given below: Locations Annual Fixed Variable Cost per Cost Unit China $450,000 $200 India $500,000 $150 Russia $550,000 $120 Using the annual forecasted demand of 3000 units, draw the break-even graph for these three locations. Using break-even analysis and calculating total cost, determine which location is the best choice. If the demand is 1500 units, which location would be the best choice? 2. Your purchasing department has identified following factors and their weights in making the location decisions. Critical Factor Location Weight China India Russia Scores Scores Scores (1-100) (1-100) (1-100) Factors Labor 0.20 100 100 90 Cost 10.15 70 80 190 Proximity to Market 0.25 80 190 70 Supply Chain Compatibility Quality of 0.30 70 70 180 Life 0.10 100 80 70 Stability of government