Question: Question 1 The fixed and variable costs for three potential manufacturing plant sites for a fruit processing in Chilliwack, BC are shown below in Table

Question 1

The fixed and variable costs for three potential manufacturing plant sites for a fruit processing in Chilliwack, BC are shown below in Table 1:

Table 1: Fixed and Variable Cost Data

Location

Fixed Cost

Variable Cost

A

$500

$11

B

$1000

$7

C

$1700

$4

a). Over what range of production is each location optimal?

b). For a production of 200 units, which site is best?

Question 2

Ted James, owner of James Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. Table2 shows the results thus far obtained by Ted by using the factor-rating method to analyze the problem.

The scale used for each factor scoring is 1 through 5.

Table 2: James Manufacturing Site Data

Site Score

Factor

Weight

A

B

C

D

Quality of Labour

10

5

4

4

5

Construction Cost

8

2

3

4

1

Transportation Cost

8

3

4

3

2

Proximity Cost

7

5

3

4

4

Taxes

6

2

3

3

4

Whether

6

2

5

5

4

Energy Cost

5

5

4

3

3

  1. Which site should James choose?

  2. If site Ds score for energy costs increases from a 3 to a 5, do results change?

  3. If site As weather score is adjusted to a 4, what is the impact?

Question 3.

Super Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Vancouver (A), Kamloops (B), Kelowna (C), or Abbottsford (D). The factors, scores, and weights follow:

Score by Location

i

Factor

Weight (Wi)

A

B

C

D

1

Labour quality

2

Quality of Life

3

Transportation

4

Proximity to markets

5

Proximity to Supplier

6

Taxes

  1. Using the factor-rating method, what is the recommended site for Super Electronics new facility?

  2. For what range of values for the weight (currently w7 = 10) does the site given as the answer to part (a) remain a recommended site?

Question 4.

After an extensive product analysis using group technology, Kate Bansah has identified a product she believes should be pulled out of his process facility and handled in a work cell. Kate has identified the following operations as necessary for the work cell. The customer expects delivery of 250 units per day, and the workday is 420 minutes.

  1. What is the takt time?

  2. How many employees should be cross trained for the cell?

  3. Which operations may warrant special consideration?

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