EMG152

Assignment no. 1 /1st qtr. SY2019-20

1. A manager has received an analysis of several cities being considered for a new office complex.
The data are :

Factor
Location Transpo Tax COLA CC REC CS BS
A 6 5 4 5 3 7 9
B 7 5 7 6 8 6 5
C 8 4 8 5 7 7 5

a. If the manager weighs the factor equally, how would the locations *stack up? * load ,pile, pack
b. If Construction cost and business services are given weights that are double the weights of the
other factors, how would the locations stack up?

2. MFA hopes to open a rust proofing shop. Customer would be local new car dealers. Two
locations are being considered, one in the center of the city and one outside. The central city
location would involve a monthly fixed cost of $7000 and labor, material and transportation cost
of $30 per car. The outside location would have fixed monthly cost of $4700 and labor,
materials and transportation costs of $40 per car. Dealer price at either location will be $90 per
car.
a. Which location will yield the greatest profit if demand is A) 200 cars B) 300 cars.
b. At what volume of output will these two sites yield the same monthly profit?

3. PLBT is attempting to determine the optimal location for training facility for its operators. The
operators are located in 4 centers and training facility to serve these centers. The coordinates
are given as follows:

Center
Coordinates 1 2 3 4
X 11 42 32 28
Y 69 31 58 45
no. of operators 6 3.4 6.8 4.5
in thousand

Determine the optimal coordinates of the training facility.

4.Your company is planning to move to a new location, and have asked your 200 employees, what
factors are the most important to them in the new location. For each of the factors given below , the
number next to the factor is the number of employees that put the factors first, or second in
importance. After this evaluation, you asked each person to rank the location first for the given factor.

Location
Factors A B C
Personal Safety (150) 80 70 50
Proximity to the Day Care (100) 50 80 70
Access to public transportation (100) 100 40 60
Parking (150) 90 60 50

The above ratings were then used to develop a score from 0 to 1 for each location with 1 being the best.
On this scale determine the best location.
Solution to Assignment 1

1. a) If the manager weighs the factor equally, the most desirable location will be Locations B and C
A will be the least desirable location option.

b) If Construction cost and business services are given weights that are double the weights of
the other factors, location B will be the most desirable.

2. a) The Outside Location has the greatest profit at 200 cars while City Location yield the
greatest profit at 300 cars.

b) At 230 cars, these two sites yield the same monthly profit.

3. X = 26.69 y = 53.93 – optimal coordinates

4. On this scale ( 0 to 1 ), the best location is Location A.