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CASE STUDY
TO BE ANSWER BY MY CLASSMATE UNDER OPERATION MANAGEMENT CLASS
1. The Mumbai baking company currently has four retail locations within the metropolitan
area of a major city. Currently each retail outlet makes all of its own breads and pastries
from scratch. In order to reduce costs and ensure consistency of the firm’s products across
all locations, the management has decided to build a central commissary where the
products will be prepared and subsequently distributed to the four retail stores. The
question now is where to locate the commissary given the data below.
Solution:
Step 1: Locate each of the existing facilities on an X and Y coordinate grid map.
Step 2: Find out the X and Y coordinates of the new plant by taking up the weighted average of
the x and y coordinates of all the existing facilities.
CASE STUDY NO. 2
Let’s suppose your company wants to expand its logistics network and locate a facility within a
network of three existing facilities. Given the following assumptions below, what are the
coordinates for the new potential location?
Given the assumptions and grid coordinates above, we get the following:
d1x= 200
d2x= 300
d3x= 100
d1y= 50
d2y= 100
d3y= 150
And,
V1= 2,500
V2= 1,300
V3= 5,000
If we were to plot the new suggested warehouse coordinates on the grid, we would get:
CASE STUDY NO. 3
Five Flags over Florida, a U.S. chain of 10 family-oriented theme parks, has decided to expand
overseas by opening its first park in Europe. It wishes to select France and Denmark.
Three locations:
Three automobile showrooms (Bowling Green, Elizabethtown, and Morehead) are located
according to the following grid which represents coordinate locations for each showroom in
Kentucky. Monthly demand of Z-Mobiles at each showroom is also given below.