Solved: QUESTION 3 a. A single facility is needed to meet the demands of four

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QUESTION 3 a. A single facility is needed to meet the demands of four markets. The locations and demands of these four markets are shown below. Market Coordinates Demand A (8,6) 10 B (4,12) 15 C D (3,2) (9.6) 10 6 b. i. Using the data in Table 13.2, identify an optimal location for the new facility. [8 marks] An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Fixed Cost Variable Cost Location A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost (1000) 400 300 i. ii. 200 100 8 10 14 16 18 20 Q (000s of units) Plot the total cost curves in the chart provided above and identify the range over which each location would be best. [7 marks] Use break-even analysis to calculate exactly the break-even quantity that defines each [3 marks] range./nA manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success. Management-supplied the factor weights and the consultant team scores as seen in the table below. Scores are based on 50 = best. Location Factor Weight A B C Labor Climate 10 35 45 20 Taxes 30 30 40 40 Utilities 20 25 20 45 Wages 40 10 25 25 i. Which location should be selected and why? [7 marks]