please see case study and questions that need to be answered. thank you

This that and handsode CASE: Data Tech, Inc. The helped is in the table Fact Party Sean attach Lection 33 Factor Proximity to 4 of the future. We had wanted the wind w years earlier by purchasing the way Proximity to ence capacity Facility with 1 The Business 10 expansion Close to business community Pleasant environment 10 ention of Dan Tischdeceptively simple Doch meie pad of mail for corporate sining documents they want transferred to die we wally receives anywhere from 10.000 to 10.000 mail per day that need to be processed. The first step workers in unpack and sort the mail received. Next, nach item through one of two scanning machines werenntent to disc. An accuracy check is then made to formation was transferred correctly. This stage is uy important as many of the documents contain im private information. Finally, the discs and the docu- packaged and sent back to the customer, with Data ping a backup disc for its records or Small To Expand Large Jeff is not sure how to evaluate whether he should focus on moving into a larger facility now or moving into a smaller facil ity with potential for expansion. He has estimated the following chances for demand: - The likelihood of demand being high is 0.70 The likelihood of demand being low is 0.30, He also estimated profitability for each alternative: - Moving into a large facility has a profitability of either $1,000,000 or $600,000, depending on whether demand turns out to be high or low. . Moving into a small facility has a profitability of $500,000, assuming that demand is low, Moving into a small facility would require considering - panding if demand turned high. If Data Tech decided to ex- pand at that point, profitability would be $800,000. If it did not expand further, the profitability would be $500,000 The Need for Capacity and Relocation full-time business out of his two-car garage is a chal- Jeff Styles. Jeff has spent a great deal of time ensuring the operation of Data Tech runs smoothly without any bot- He has been successful, and his two original customers signed long-term contracts with him. In addition, he ed two additional customers. This means that Data med to move to a larger facility that could accommodate of the business the narrowed his search to three potential locations. He dentified the factors that are important to him and rated che considering a number of criteria. Some factors are ly important, such as proximity to the postal service that ens the daily packages. Another is closeness to the airport, as quently travels to customer locations. actor that is particularly troubling for Jeff is the issue of Two of the locations he is considering are larger than rently needs and offer excess growth capacity. The third would meet current capacity needs but would not offer room for expansion. He doesn't know which is a better In his list of factor weights Jeff has made spaces for capacity options, giving himself some time to think about Case Questions 1. Help Jeff decide whether he should give greater priority to a smaller facility with possibility for expansion or move into a larger facility immediately. Decide on which is the best alterna tive and choose weights for the two capacity factors based on your findings 2. Once you have selected the factors for the two capacity alter- natives, use factor rating to select a new location for Data Tech 3. How would your factor analysis be different if you had se lected a different capacity alternative! Data Tech, Inc. is a small town company started by Self Styles. Data Tech is a business that transfers hard copies of doce ents, such as invoices, bills, or mailing lists, onto CDs. As more punes move to a paperless environment, placing data on is the wave of the future. Jeff had started the company in his two-car garage three years earlier by purchasing the De software and signing two large corporations as his first - tomers. Now he was about to sign on two additional corporate customers. Suddenly what was a small garage operation was CASE: Data Tech, Inc. ? D 10 The operations function of Data Tech seems deceptively simple. CASE: DATA TECH INC. - 351 The information that leff has compiled is shown in the table Factor Factor Score at Each Location Factor Weight Prosimity to 12 20 3 4 airport Proximity to 30 4 2 turning into a major business. postal service 5 Facility with 7 5 D Kors capacity The Business Facility with 1 5 potential for Every day Data Tech receives packages of mail from corporate expansion customers containing documents they want transferred to disc. Close to 5 Data Tech usually receives anywhere from 10,000 to 30.000 business pieces of mail per day that need to be processed. The first step community requires workers to unpack and sort the mail received. Next Pleasant 10 4 workers scan each item through one of two scanning machines environment that transfer content to disc. An accuracy check is then made to ensure that information was transferred correctly. This stage is To Expand Large or Small particularly important as many of the documents contain im- Jeff is not sure how to evaluate whether he should focus on portant private information. Finally, the discs and the docu- moving into a larger facility now or moving into a smaller facil- ments are packaged and sent back to the customer, with Data ity with potential for expansion. He has estimated the following Tech keeping a backup disc for its records. chances for demand: . The likelihood of demand being high is 0.70 The Need for Capacity and Relocation - The likelihood of demand being low is 0.30 Running a full-time business out of his two-car garage is a chal He also estimated profitability for each alternative: lenge for Jeff Styles. Jeff has spent a great deal of time ensuring that the operation of Data Tech runs smoothly without any bot- Moving into a large facility has a profitability of either tlenecks. He has been successful, and his two original customers $1,000,000 or $600,000, depending on whether demand turns out to be high or low. have just signed long-term contracts with him. In addition, he . Moving into a small facility has a profitability of $500,000 has acquired two additional customers. This means that Data assuming that demand is low. Tech needs to move to a larger facility that could accommodate - Moving into a small facility would require considering - the larger size of the business. panding if demand turned high. If Data Tech decided to ex Jeff has narrowed his search to three potential locations. He pand at that point, profitability would be $800,000. If it did has identified the factors that are important to him and rated not expand further, the profitability would be $500,000 each location considering a number of criteria. Some factors are especially important, such as proximity to the postal service that Case Questions delivers the daily packages. Another is closeness to the airport, as 1. Help Jeff decide whether he should give greater priority to Jeff frequently travels to customer locations. a smaller facility with possibility for expansion or move into a A factor that is particularly troubling for Jeff is the issue of larger facility immediately. Decide on which is the best alterna- capacity. Two of the locations he is considering are larger than tive and choose weights for the two capacity factors based on he currently needs and offer excess growth capacity. The third your findings location would meet current capacity needs but would not offer 2. Once you have selected the factors for the two capacity alter- natives, use factor rating to select a new location for Data Tech. ample room for expansion. He doesn't know which is a better 3. How would your factor analysis be different if you had se strategy. In his list of factor weights Jeff has made spaces for lected a different capacity alternative? both capacity options, giving himself some time to think about the issues