Question: OUESTION 3 a . A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are
OUESTION
a
A single facility is needed to meet the demands of four markets. The locations and demands of
these four markets are shown below.
i Using the data in Table identify an optimal location for the new facility.
b
An operations manager has narrowed down the search for a new King Kola plant to three
locations. Fixed and variable costs follow.
i Plot the total cost curves in the chart provided above and identify the range over
which each location would be best.
ii Use breakeven analysis to calculate exactly the breakeven quantity that defines each
range.
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