Question: Please do this in Excel. Thank you! As the operations manager of Ricardo Inc, a manufacturer of gas grills in Central Ohio, you have to
Please do this in Excel. Thank you!
As the operations manager of Ricardo Inc, a manufacturer of gas grills in Central Ohio, you have to decide where your next factory will be. There are three (3) alternative locations that you have to choose among; China, India, and Russia. You want to have two different approaches to this analysis; the first one is solely cost based (breakeven analysis) and the second one is multi-criteria 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 Cost | Variable Cost per Unit |
| China | $450,000 | $200 |
| India | $500,000 | $150 |
| Russia | $550,000 | $120 |
a) The annual forecasted demand of 3000 units, draw the break-even graph for these three locations.
b) Using breakeven analysis, determine which location is the best choice.
c) If the demand is 1500 units, which location would be the best choice?
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2) Your purchasing department has identified following factors and their weights in making the location decisions.
| Critical Location Factors | Factor Weight | China Scores (1-100) | India Scores (1-100) | Russia Scores (1-100) |
| Labor Cost | .20 | 100 | 100 | 90 |
| Proximity to Market | .15 | 70 | 80 | 90 |
| Supply chain Compatability | .25 | 80 | 90 | 70 |
| Quality of Life | .30 | 70 | 70 | 80 |
| Stability of government | .10 | 100 | 80 | 70 |
3) Using the information given above determine the best candidate for the new factory location.
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