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Location Analysis: Exercise

1) A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. Do a locational cost-volume analysis, and indicate which location is the best for production unit of 5,000

Costs	A	B	C
Fixed ($)	2,500,000	2,000,000	3,500,000
Variable ($ per unit)	21	25	15

2) Using the factor ratings shown below, determine which location alternative should be chosen on the basis of maximum composite score.

		Location
Factor	Weight	A	B	C
Easy access	0.15	86	72	90
Parking facilities	0.20	72	77	91
Display area	0.18	86	90	90
Shopper (walking) traffic	0.21	94	86	80
Neighborhood wealth	0.16	99	89	81
Neighborhood safety	0.10	96	85	75

3) A telecommunications firm is planning to lay fiber optic cable from several community college distance learning sites to a central studio, in such a way that the miles of cable are minimized. Some locations require more than one set of cables (these are the loads). Where should the studio be located to accomplish the objective?

College	Map Coordinate (x, y)	Load
A	(2,10)	3
B	(6,8)	2
C	(4,9)	4
D	(9,5)	1
E	(8,1)	3
F	(3,2)	2
G	(2,6)	1

4. What are the differences between the retail layout and office layout?

5. How does supermarket attracts people to engage the customers?