HOMEWORK VIII Using the center-of-gravity method, what should be the coordinate location of the branch library? (30 points) 3. Ching-Chang Kug is considering opening a new foundry in Denton, Texas, Edwardsville, Illinois, or Fayetteville, Arkansas. He has assembled the following fixed-cost and variable-cost data: 1. Just as cities and communities can be compared for location selection by the weighted approach model, so can actual site decisions within those cities. Following table illustrates four factors of importance to Washington DC, and the health officials charged with opening that city's first public drug treatment clinic. Of primary concern (and a given a weight of 5) was location of the clinic so it would be as accessible as possible to the largest number of patients. Due to a tight budget, the annual lease cost was also of some concern. A suite in the city hall, at 14th and U Streets, was highly rated because its rent would be free. An old office building near the downtown bus station received a much lower rating because of its cost. Equally important as lease cost was the need for confidentiality of patients and, therefore, for a relatively inconspicuous clinic. Finally, because so many of the staff at the clinic would be donating their time, the safety, parking, and accessibility of each site were of concern as well. Using the factor-method, which site is preferred? (30 points) Per Unit Cost Variable Labor Location Material Overhead Denton Edwardsville Fayetteville Fixed Cost Per Year 200,000 180.000 170.000 0.20 0.25 | 1.00 10.40 0.75 | 1.00 0.40 0.75 | 1.00 a) Compute the total cost for each alternative location, where the units are 5000, 8000, 20000, 25000, and 30000. (10 points) b) Graph the total cost lines. (10 points) c) Over what range of annual volume is each facility going to have a competitive advantage? (10 points) d) What is the volume at the intersection of the Edwardsville and Fayetteville cost lines? (10 points) Factor Weight Potential Location Homeless City Shelter Hall Bus Terminal Good luck! Accessibility for addicts Annual lease cost Inconspicuous Accessibility for health staff NI w 2. The Metropolis Public Library plans to expand with its first major branch library in the city's growing north side. The branch will serve six census tracts. Here are the coordinates of each tract and the population within it: Census Tract 503-Logan Square 519-Albany Park 522-Rogers Park 538-Kentwood 540-Roosevelt 561-Western Center of Act (3,4) (4,5) (3,6) (4,7) (2,3) (5,2) Population in Tract 45,000 25,000 62,000 51,000 32,000 29,000