Location Planning Homework Problem 1: Balfour's is considering building a plant in one of the two possible locations. They have estimated the following parameters for each location: Location Fixed Cost Variable Cost Dallas $300,000 $5.75 Austin $600,000 $2.75 Please use break-even analysis to show which location is better between Dallas and Austin depending on the sale volume. Problem 2: A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is looking at three possible locations. The factors, weights, and ratings being considered are given below. Which city should they choose? Ratings Factor Weights Peoria Des Moines Chicago Nearness to markets 20 4 7 5 Labor cost 5 8 8 4 Taxes 15 8 9 7 Nearness to suppliers 10 10 6 10 1 Problem 3: Our main distribution center in Phoenix, AZ is due to be replaced with a much larger, more modern facility that can handle the tremendous needs that have developed with the city's growth. Fresh produce travels to the seven store locations several times a day making site selection critical for efficient distribution. Using the data in the following table, determine the map coordinates for the proposed new distribution center. Store Locations Map Coordinates (x,y) Truck Round Trips per Day Mesa (10,5) 3 Glendale (3,8) 3 Camelback (4,7) 2 Scottsdale (15,10) 6 Apache Junction (13,3) 5 Sun City (1,12) 3 Pima (5,5) 10 Solutions: 1. Sales volume < 100,000 units, choose Dallas; sales volume > 100,000 units, choose Austin. 2. Des Moines 3. x-coordinate: 7.97; y-coordinate: 6.69 2