Homework 4 (Location Planning & Analysis)

Q1) A company is planning on expanding and building a new plant in one of three Southeast Asian
countries. Chris Ellis, the manager charged with making the decision, has determined that five
key success factors can be used to evaluate the prospective countries. Ellis used a rating system
of 1 (least desirable country) to 5 (most desirable) to evaluate each factor.

a) Which country should be selected for the new plant?

 b) Political
P olitical unrest in Thailand results in a lower score, 2, for Political
Po litical and legal aspects.
aspe cts.
Does your conclusion change?
c) What if Thailand’s score drops even further, to a 1, for Political and legal aspects? 
aspects?  

Q2) The following table gives the map coordinates and the shipping loads for a set of cities that
we wish to connect through a central hub.

a) Near which map coordinates should the hub be located?

 b) If the shipments from city A triple,
triple, how does this change the coordinates?\
 

 
Q3) Hyundai Motors is considering three sites — A,
A, B, and C — at
at which to locate a factory to build
its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum cost
site, where cost is measured by the annual fixed plus variable costs of production. Hyundai
Motors has gathered the following data:

The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each
year, but, thus far, that is the extent of its knowledge about production plan
plans.
s.

a) For what values of volume, V, of production, if any, is site C a recommended site?

 b) What volume indicates site A is optimal?

c) Over what range of volume is site B optimal? Why?