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Chapter Eight. Location Decisions.
DISCUSSION QUESTIONS
1. FedEx’s key location concept is the central hub concept, with Memphis selected for several reasons, including
its being in the middle of the country and having very few hours of bad weather closures.
2. The major reason for U.S. firms to locate overseas is often lower labor costs, but as this chapter, and Chapter 2
suggest, there are a number of considerations.
3. The major reason foreign firms build in the U.S. is to satisfy the demand for foreign goods in the United States
while reducing transportation cost and foreign exchange risk; in addition, U.S. locations allow foreign firms to
circumvent quotas and/or tariffs.
4. Clustering is the tendency of firms to locate near competitors.
5. Different weights can be given to different factors. Personal preferences are included.
6. The qualitative approach usually considers many more factors, but its results are less exact.
7. Clustering examples in the service sector include fast-food restaurants, shoe and jewelry stores in a shopping
mall, and theme parks.
8. Factors to consider when choosing a country:
◼ Exchange rates
◼ Government stability (political risk)
◼ Communications systems within the country and to the home office
◼ Wage rates
◼ Productivity
◼ Transportation costs
◼ Language
◼ Tariffs
◼ Taxes
◼ Attitude towards foreign investors/incentives
◼ Legal system
◼ Ethical standards
◼ Cultural issues
◼ Supplies availability
◼ Market locations
9. Factors to consider in a region/community decision:
◼ Corporate desires
◼ Attractiveness of region
◼ Labor issue
◼ Utilities
◼ Environmental regulations
◼ Incentives
◼ Proximity to raw materials/customers
◼ Land/construction costs

10. Franchise operations may add new units per year; Exxon, McDonald’s, and Walmart add hundreds of units per
year, meaning almost daily location decisions. For such organizations, the location decision becomes more structured,
more routine. Perhaps by repeating this process they discover what makes their strategic locations decisions
successful.
11. Factors affecting location decisions: nearness to resources, suppliers, and customers; labor productivity;
foreign exchange; political risk, unions; employment; zoning; pollution; taxes; and clustering.
12. The center-of-gravity method assumes that cost is directly proportional to both distance and volume shipped.
For service facilities, revenue is assumed to be directly proportional to proximity to markets.
13. Locational break-even analysis has three steps:
◼ Step 1: Determine fixed and variable cost for each location.
◼ Step 2: Plot the costs for each location, with costs on the vertical axis of the graph and annual volume on
the horizontal axis.
◼ Step 3: Select the location that has the lowest total cost for the expected production volume.
14. The issue of weight or volume gain and weight or volume loss during processing is important, and supports
the manufacturing side of the saying (weight loss during mining and refining, for example, suggests shipping after
processing). But JIT may be more easily accomplished when suppliers are clustered near the customer. And some
services (such as Internet sales) can take place at tremendous distances without sacrificing close contact.

Copyright ©2014 Pearson Education


15. Besides low wage rates, productivity should be considered also. Employees with poor training, poor education,
or poor work habits are not a good buy. Moreover, employees who cannot or will not reach their place of work are not
much good to the organization.
16. Service location techniques: regression models to determine importance of various factors, factor rating method,
traffic counts, demographic analysis of drawing area, purchasing power analysis of area, center-of-gravity method, and
geographic information system.
17. The distributor is more concerned with transportation and storage costs, and the supermarket more concerned
with proximity to markets. The distributor will focus more on roads, overall population density (store density),
while the supermarket will focus more on neighborhood affluence, traffic patterns, etc. The distributor will be
concerned with speedy and reliable delivery, the supermarket
with easy access. Both will have concerns over attitudes and zoning. Both will need access to similar labor forces;
both will need similar measures of workforce education, etc. Many other comparisons can be drawn.
18. This is a service location problem, and should focus on revenues, not costs. Customer traffic, customer
income, customer density, are obvious beginning points. Parking/access, security/ lighting, appearance/image, rent,
etc. (see Table 8.6) are other important variables.
19. An aerotropolis is an airport region that integrates a cluster of hotels, offices, distribution, and logistics
facilities.

ETHICAL DILEMMA
Location is a major issue in the U.S. today. Almost every community is seeking new jobs, especially from foreign
firms like Mercedes. As Mercedes was definitely coming to the U.S. anyway, the bidding wars are nonproductive
from a central economy perspective. There are many implications to the local citizenry, especially because they
pay the bills if the financial successes predicted are not accurate. Votes are usually not taken as these decisions are
made by the political leaders of the community. Objective economic analysis on the incentives versus benefits
might limit the giveaways.
As the United Airlines discussion suggests, there are many downsides to the spread of incentives being
offered by almost every city, state, and country. Orlando and Louisville are likely counting their blessings that they
lost the bidding war for the United repair base. For every happy ending (such as Vance, Alabama, claims with its
Mercedes plant), there is a story like the one in this Ethical Dilemma. The Internet should yield a rich crop of
similar situations.

ACTIVE MODEL EXERCISE


ACTIVE MODEL 8.1: Center of Gravity
1. What is the total weighted distance from the current old and inadequate warehouse in Pittsburgh?
318,692
2. If they relocate their warehouse to the center of gravity, by how much will this reduce the total weighted
shipping distance?
By 18,663—from 318,692 to 300,029.
3. Observe the graph. If the number of shipments from New York doubles, how does this affect the center of
gravity?
The center of gravity moves north and east.
4. The center of gravity does not necessarily find the site with the minimum total weighted distance. Use the
scrollbars to move the trial location and see if you can improve (lower) the distance.
64, 97, (with a total weighted distance of 299), 234 (using Solver).
5. If you have Solver set up in Excel, from Excel’s main menu, use Tools, Solver, Solve in order to see the best
answer to the previous question.
64, 97, (with a total weighted distance of 299), 234.

END-OF-CHAPTER PROBLEMS
8.1 Where: 6 laborers each making $3 per day can produce 40 units.
10 laborers each making $2.00 per day can produce 45 units.
2 laborers each making $60 per day can make 100 units.
6  $3
(a) Myanmar = = $0.45 unit
40
10  $2.00
(b) China = = $0.44 unit
45
2  $60
(c) Montana = = $1.20 unit
100

Copyright ©2014 Pearson Education


China is most economical, assuming that transportation costs are not included.

8.2 Thailand: 2,000 baht/200 = 10 baht/unit,


if $1 = 10 baht $1/unit
India: 2,000 rupees/200 = 10 rupees/unit,
if $1 = 8 rupees  $1.25/unit
Sacramento (U.S.A.): $200/200 = $1/unit
Select either Thai or U.S. company.

8.3 Myanmar $0.45 + $1.50 = $1.95


China $0.44 + $1.00 = $1.44
Montana $1.20 + $0.25 = $1.45
China is most favorable, but Montana is almost tied.

8.4 (a) Baptist Church is best.


Site
Maitland Baptist Church Northside Mall
Factor (weight  score) (weight  score) (weight  score)

Space 18 21 24
Costs 10 20 7.5
Traffic density 10 16 12
Neighborhood
income 7.5 10.5 6
Zoning laws 8 2 9
Totals 53.5 69.5 58.5
(b) The totals are now Maitland, 52.5; Baptist Church, 70.5; and Northside Mall, 56.5. Baptist Church’s location is
even more preferred.

8.5 If India had a tariff of 30%, then making the items in India is $0.05 less than importing them from
anywhere.

8.6 8.7
Philadelphia New York
Factor (weight  score) (weight  score)
Customer
convenience 17.5 20
Bank accessibility 8.0 18
Computer support 17.0 15
Rental costs 13.5 8.25
Labor costs 8.0 5.0
Taxes 9.0 5.0
Totals 73.0 71.25

Northeastern should locate in Philadelphia.

8.7 (a) Mobile = 0.4(80) + 0.3(20) + 0.2(40) + 0.1(70) = 53


Jackson = 0.4(60) + 0.3(50) + 0.2(90) + 0.1(30) = 60
Jackson is better.
(b) A change to 75 (from 60) in Jackson’s incentive package does not change the answer to part (a)
because Jackson was already the better site. The new Jackson score is now 66 overall, while Mobile
stays at 53.

8.8 (a)
Location
Present Location Newbury Hyde Park
Factor Wgt Wgt Wgt
1 40 0.30 12 60 0.30 18.00 50 0.30 15.0
2 20 0.15 3 20 0.15 3.00 80 0.15 12.0

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3 30 0.20 6 60 0.20 12.00 50 0.20 10.0
4 80 0.35 28 50 0.35 17.50 50 0.35 17.5
Total Points 49 Total Points 50.50 Total Points 54.5
It appears that Hyde Park represents the best alternative.
(b) If Present Location’s public transportation score increases from 30 to 40, the total score increases by
10 points × 0.20 weight = 2.0 points. So the new score is 51 points for Present Location, which is
still not as good as Hyde Park’s score.

8.9
(a) The weighted averages are:
Akron 81.5
Biloxi 80.0
Carthage 87.5
Denver 76.0

Akron Biloxi Carthage Denver


Weight  Weight  Weight  Weight 
Factor Weight Score Score Score Score Score Score Score Score
Labor 0.15 90 13.5 80 12.0 90 13.5 80 12.0
Availability
Tech. School 0.10 95 9.5 75 7.5 65 6.5 85 8.5
Quality
Operating 0.30 80 24.0 85 25.5 95 28.5 85 25.5
Cost
Land &
0.15 60 9.0 80 12.0 90 13.5 70 10.5
Construction
Ind. Incentives 0.20 90 18.0 75 15.0 85 17.0 60 12.0
Labor Cost 0.10 75 7.5 80 8.0 85 8.5 75 7.5
1.00 81.5 80.0 87.5 76.0

(b) Carthage is preferred (87.5 points) in the initial scenario.


Akron Biloxi Carthage Denver
Weight  Weight  Weight  Weight 
Factor Weight Score Score Score Score Score Score Score Score
Labor 0.15 90 13.5 80 12.0 90 13.5 80 12.0
Availability
Tech. School 0.10 95 9.5 75 7.5 65 6.5 85 8.5
Quality
Operating 0.10 80 8.0 85 8.5 95 9.5 85 8.5
Cost
Land &
0.15 60 9.0 80 12.0 90 13.5 70 10.5
Construction
Ind. Incentives 0.20 90 18.0 75 15.0 85 17.0 60 12.0
Labor Cost 0.30 75 22.5 80 24.0 85 25.5 75 22.5
1.00 80.5 79.0 85.5 74.0

(c) In the second scenario, all four scores fall to smaller values, Carthage more than the others, but
it is stillfirmly in first place. All scores are smaller because all sites had operating cost scores
better than labor cost scores. When labor cost takes on the higher weight, the lower scores
have more influence on the total.
The new scores are:
Akron 80.5
Biloxi 79.0
Carthage 85.5
Denver 74.0

8.10 (a)
Factor Weight Taiwan Thailand Singapore
Technology 0.2 .8 1.0 .2

Copyright ©2014 Pearson Education


Level of education 0.1 .4 .1 .5
Political/legal 0.4 .4 1.2 1.2
Social 0.1 .4 .2 .3
Economic 0.2 .6 .6 .4
Weighted average 2.6 3.1 2.6

Thailand rates highest (3.1).


(b) Now Thailand’s overall score drops to 2.7, just ahead (but not by much) of Taiwan and Singapore.
(c) Now Thailand’s score drops to 2.3, leaving the other two countries in a tie for first place.

8.11 (a)
Location A
Factor Weight Rating Weighted Score
1 5 100 500
2 3 80 240
3 4 30 120
4 2 10 20
5 2 90 180
6 3 50 150
Total weighted score: 1210

Location B
Factor Weight Rating Weighted Score
1 5 80 400
2 3 70 210
3 4 60 240
4 2 80 160
5 2 60 120
6 3 60 180
Total weighted score: 1310

Location C
Factor Weight Rating Weighted Score
1 5 80 400
2 3 100 300
3 4 70 280
4 2 60 120
5 2 80 160
6 3 90 270
Total weighted score: 1530

Based on the total weighted scores, Location C should be recommended.


Note that raw weights were used in computing these weighted scores (we just multiplied “weight” times
“rating”). Relative weights could have been used instead by taking each factor weight and dividing by the sum of
the weights (i.e., 19). Then the weight for factor 1 would have been 5/19 = 0.26. Location C would still have
been selected.
(b) Location B’s “Proximity to Port Facilities” score increases from 80 to 90: The total score increases
by 10 × (5 weight) = 50, to 1,360 points.
(c) To change its rank to first place, Location B needs to increase to at least 1,530 points from 1,310. Even if the
score is 100, the total only increases to 1,410, so B will stay as the second choice. To end up in third place, if
the rating drops below 60, the total weighted score drops below 1,210, which is Location A’s total score.

8.12 (a)
Site Total Weighted Score
A 174
B 185
C 187
D 165
Site C has the highest total weighted score so should be selected. (As a practical matter, when scores are
as close as those for Sites B and C, further analysis is warranted.)
(b) Site D’s total score is now raised from 165 to 175. Although D ranks slightly higher than A, the
results do not change.

Copyright ©2014 Pearson Education


(c) Site A’s total score increases by 12 points, to 186. This is now close to a three-way tie between sites
A, B and C. Other factors need to be introduced.

8.13 (a) Given the factors and weightings presented, the following table suggests that Great Britain be
selected:
Great
Factor Holland Britain Italy Belgium Greece
1 Stability of 5 5 3 5 4
government
2 Degree to 4 5 3 4 3
which the
population can
converse in
English
3 Stability of 5 4 3 4 3
the monetary
system
4 Communications 4 5 3 4 3
infrastructure
5 Transportation 5 5 3 5 3
infrastructure
6 Availability of 3 4 5 3 5
historic/
cultural sites
7 Import 4 4 3 4 4
restrictions
8 Availability of 4 4 3 4 3
suitable
quarters
34 36 26 33 28

(b) If English is not an issue, as illustrated in the following table, Great Britain, Holland, and
Belgium should all be considered further:
Great
Factor Holland Britain Italy Belgium Greece
1 Stability of 5 5 3 5 4
government
3 Stability of the 5 4 3 4 3
monetary
system
4 Communications 4 5 3 4 3
infrastructure
5 Transportation 5 5 3 5 3
infrastructure
6 Availability of 3 4 5 3 5
historic/
cultural sites
7 Import 4 4 3 4 4
restrictions
8 Availability of 4 4 3 4 3
suitable
quarters
30 31 23 29 25
8.14 (a) Chicago = 16 + 6 + 7 + 4 = 33
Milwaukee = 10 + 13.5 + 6 + 3 = 32.5
Madison = 12 + 12 + 4 + 2.5 = 30.5
Detroit = 14 + 6 + 7 + 4.5 = 31.5
All four are quite close, with Chicago and Milwaukee almost tied. Chicago has the largest
rating, with a 33.
(b) With a cutoff of 5, Chicago is unacceptable because it scores only 4 on the second factor. Only
Milwaukee has scores of 5 or higher on all factors. Detroit and Madison are also eliminated, as each
has one rating of a 4.

Copyright ©2014 Pearson Education


8.15 (a)
Germany: 0.05(5) + 0.05(4) + 0.2(5) + 0.2(5) + 0.2(1) + 0.1(4) + 0.1(1) + 0.1(2) = 3.35
Italy: 0.05(5) + 0.05(2) + 0.2(5) + 0.2(2) + 0.2(4) + 0.1(2) + 0.1(4) + 0.1(3) = 3.45
Spain: 0.05(5) + 0.05(1) + 0.2(5) + 0.2(3) + 0.2(1) + 0.1(1) + 0.1(4) + 0.1(1) = 2.7
Greece: 0.05(2) + 0.05(1) + 0.2(2) + 0.2(5) + 0.2(3) + 0.1(1) + 0.1(3) + 0.1(5) = 3.05

Italy is highest.
(b) Spain’s cost would drop, but the result would not change with a 4, since Spain is already
lowest. No score will change Spain’s last place.

8.16 (a) The following figure indicates the volume range for which each site is optimal.
Site 1 is optimal for production less than or equal to 125 units.

Site 2 is optimal for production between 125 and 233 units.


Site 3 is optimal for production above 233 units.
(b) For 200 units, site 2 is optimal.

8.17 8.18 (a)

For all volumes above 10,000, site C has the lowest cost.
(b) Site A is optimal for volumes from 0 to 10,000 Audis.
(c) Site B is never optimal because its cost line always exceeds that of A or C for all volume levels.

8.18 (a) See the figure below:

Copyright ©2014 Pearson Education


Cost(Dallas) = Cost(Detroit)
FC (Dallas) + Q  VC (Dallas) = FC (Detroit) + Q  VC (Detroit)
$600,000 + $28Q = $800,000 + $22Q
$6Q = $200,000
Q = $200,000 / $6
Q = 33,333

(b) Q drops to 23,333, from 33,333.


since $660,000 + 28Q = $800,000 + 22Q
so, 6Q = 140,000
or Q = 23,333

8.19 (a)
5  5 + 6  10 + 4  15 + 9  5 + 7  15 + 3  10 + 2  5
Cx =
5 + 10 + 15 + 5 + 15 + 10 + 5
335
= = 5.15
65
10  5 + 8  10 + 9  15 + 5  5 + 9  15 + 2  10 + 6  5
Cy =
5 + 10 + 15 + 5 + 15 + 10 + 5
475
= = 7.31
65
The proposed new hub should be near (5.15, 7.31).
(b) When the shipment loads from City A triple, from 5 to 15, the new coordinates are (5.13, 7.67).

8.20 (a) Crossover is where ProfitBonham = ProfitMcKinney;


or –800,000 + 15,000X = –920,000 + 16,000X
Crossover is at 120 units.
Profit Bonham = −800,000 + (29,000 − 14,000)X
= −800,000 + 15,000X
Profit McKinney = −920,000 + (29,000 − 13,000)X
= −920,000 + 16,000X
(b, c) McKinney is preferable beyond 120 units, Bonham below 120 units.
(d) Bonham has break even at about 53 units; McKinney about 58, so both are beyond break even
at the crossover.

8.21 8.22

Copyright ©2014 Pearson Education


A (North Park) (4, 11) 500
B (Jefferson) (5, 2) 300
C (Lincoln) (8, 2) 300
D (Washington) (11, 6) 200
1,300

(a)

(4  500) + (5  300) + (8  300) + (11  200) 8,100


Cx = = = 6.23
1,300 1,300
(11  500) + (2  300) + (2  300) + (6  200) 7,900
Cy = = = 6.08
1,300 1,300

X = New middle school to serve 4 elementary schools.


(b) Other considerations:
◼ Cannot locate on the highway obviously
◼ Safety—pedestrian bridge
◼ Space for school and grounds
◼ Traffic
◼ Availability of land and its price

8.22 3  9.2 + 3  7.3 + 5  7.8 + 3  5.0 + 3  2.8 +


3  5.5 + 3  5.0 + 3  3.8
Cx =
26
154.8
= = 5.95
26
3  3.5 + 3  2.5 + 5  1.4 + 3  8.4 + 3  6.5 + 3  2.4 +
3  3.6 + 3  8.5
Cy =
26
113.2
= = 4.35
26
The distance-minimizing location is at (5.95, 4.35). This minimizes distance traveled, but is “straight line,”
which does not reflect realities of highway routes. It does not consider rivers, bridges, and other
geographical impediments. Consider placing the office as near the center of gravity as possible and still be
on or near a major highway. Students who overlay this onto a map of Louisiana should recognize that Baton
Rouge would be an ideal location.

8.23 (a)
Cx = x coordinate of center of gravity

Copyright ©2014 Pearson Education


[25(2,000) + 25(5,000) + 55(10,000) + 50(7,000) +
80(10,000) + 70(20,000) + 90(14,000)]
Cx =
[2,000 + 5,000 + 10,000 + 7,000 + 10,000 +
20,000 + 14,000]
4,535,000
Cx = = 66.69
68,000
[45(2,000) + 25(5,000) + 45(10,000) + 20(7,000) +
50(10, 000) + 20(20,000) + 25(14,000)]
Cy =
[2,000 + 5,000 + 10,000 + 7,000 + 10,000 +
20,000 + 14,000]
2,055,000
Cy = = 30.22
68,000
The center of gravity is (66.69, 30.22).
(b) When Census tracks 103 and 105 increase by 20% each, from 10,000 to 12,000 population, the new
coordinates become (66.74, 31.18). Coordinate denominators increase (by 2,000
+ 2,000) to 72,000. The x-coordinate numerator increases (by 55(2,000) + 80(2,000)) to 4,805,000.
The y-coordinate numerator increases (by 45(2,000) + 50(2,000)) to 2,245,000.

8.24 (a) Weighted scores:


British International Airways
Milan Rome Genoa Paris Lyon Nice
3,415 2,945 3,425 3,155 3,970 3,660
Munich Bonn Berlin
3,425 3,915 3,665

So, for part (a) the top three cities become: Lyon is best (3,970), Bonn is second (3,915), and Berlin is
third (3,665).
(b) Weighted scores with hangar weights modified:

British International Airways


Milan Rome Genoa Paris Lyon Nice
3,215 2,825 3,345 2,795 3,730 3,460
Munich Bonn Berlin
3,065 3,555 3,585

So, for part (b) the top three cities become: Lyon is best (3,730), Berlin is second (3,585), and Bonn is
third (3,555).
(c) German cities reweighed on financial incentives:

British International Airways


Munich Bonn Berlin
Weighted Score 3,320 3,810 3,840

Yes, increasing the financial incentive factors to 10 for the three German cities of Munich, Bonn, and
Berlin changes the top three cities to Berlin (3,840), Bonn (3,810), and Lyon (3,730).
8.25 (a) Calculate the overall site scores for each site:
Site Overall Score
A 20(5) + 16(2) + 16(3) + … + 10(5) = 348
B 20(4) + 16(3) + 16(4) + … + 10(4) = 370
C 20(4) + 16(4) + 16(3) + … + 10(3) = 374
D 20(5) + 16(1) + 16(2) + … + 10(3) = 330
Site C is best

(b) Replace 10 by w7 in the overall score calculations above. Get overall site scores as a function of
w7 thereby:

Si Overall Score
te

Copyright ©2014 Pearson Education


A 20(5) + 16(2) + 16(3) + … + 5w7 = 298 + 5w7
B 20(4) + 16(3) + 16(4) + … + 4w7 = 330 + 4w7
C 20(4) + 16(4) + 16(3) + … + 3w7 = 344 + 3w7
D 20(5) + 16(1) + 16(2) + … + 3w7 = 300 + 3w7
Now find all values (a) 344 + 3w7  298 + 5w7
of w7 such that (b) 344 + 3w7  330 + 4w7
(a), (b), & (c) all hold: (c) 344 + 3w7  300 + 3w7
Results:
(a) states w7  23 (b) states w7  14
(c) states 344  300 (which holds for all values of w7).
For all positive values of w7 such that w7  14.

(4  500) + (5  300) + (8  300) + (11  200) 8,100


Cx = = = 6.23
1,300 1,300
(11  500) + (2  300) + (2  300) + (6  200) 7,900
Cy = = = 6.08
1,300 1,300

ADDITIONAL HOMEWORK PROBLEMS


Here are solutions to additional homework problems
that appear on our Web sites, www.myomlab.com and www.pearsonglobaleditions.com/heizer.
8.26 To aid in this analysis, we assign a rating to each “grade”:

Grade Rating
A 4
B 3
C 2
D 1

and to each “factor”:

Factor Rating
Rent 1.00
Walk-in 0.90
Distance 0.72

and compute overall ratings for each location:

1  1.0 + 3  0.90 + 3  0.72


Downtown rating = = 2.24
2.62
2  1.0 + 4  0.90 + 4  0.72
Shopping mall rating = = 3.24
2.62
4  1.0 + 1  0.90 + 2  0.72
Coral Gables rating = = 2.42
2.62
If you do not divide by the sum of the weights, the respective ratings are 5.86, 8.48, and 6.34. The
shopping mall receives the highest rating using this site selection approach.

8.27 9 9 + 68 + 2 5 + 8 5 + 2 4
Downtown rating = = 6.03
31
7 9 + 6  8 + 5 5 + 4  5 + 9 4
Suburb A rating = = 6.19
31
6  9 + 8 8 + 6  5 + 5 5 + 6  4
Suburb B rating = = 6.35
31
Suburb B has the highest rating, but weights should be examined using sensitivity analysis, as the final
ratings are all close.

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8.28 70 ×10 + 85 ×10 + 70 × 25 + 80 × 20 + 90 ×15 6,250
Site 1 factor rating = = = 78.125
80 80
60 ×10 + 90 ×10 + 60 × 25 + 90 × 20 + 80 ×15 6,000
Site 2 factor rating = = = 75.0
80 80
85 ×10 + 80 ×10 + 85 × 25 + 90 × 20 + 90 ×15 6,925
Site 3 factor rating = = = 86.56
80 80
90 ×10 + 60 ×10 + 90 × 25 + 80 × 20 + 75 ×15 6,475
Site 4 factor rating = = = 80.94
80 80

Site 3 has the highest rating factor, 86.56, and should be selected.

8.29 (a)

1,000,000 + 73X = 800,000 + 112X


200,000 = 39X, or X = 5,128
(b) For 5,000 units, Perth is the better option.

8.30 (a)

The total cost equations are:

Atlanta: TC = 125,000 + 6  x
Burlington: TC = 75,000 + 5  x
Cleveland: TC = 100,000 + 4  x
Denver: TC = 50,000 + 12  x
(b) Denver is preferable over the range 0–3,570 units. Burlington is lowest cost at any volume
exceeding 3,570 but less than 25,000 units. Atlanta is never lowest in cost. Cleveland becomes
the best site only when volume exceeds 25,000 units per year.
(c) At a volume of 5,000 units, Burlington is the least-cost site.

8.31

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City Map Coordinates Shipping Load
A 2,1 20
B 2,13 10
C 4,17 5
D 7,7 20
E 8,18 15
F 12,16 10
G 17,4 20
H 18,18 20
120

2(20) + 2(10) + 4(5) + 7(20) + 8(15) + 12(10) + 17(20) + 18(20)


Cx =
(20 + 10 + 5 + 20 + 15 + 10 + 20 + 20)
1160
= = 9.67
120
1(20) + 13(10) + 17(5) + 7(20) + 18(15) + 16(10) + 4(20) + 18(20)
Cy =
(20 + 10 + 5 + 20 + 15 + 10 + 20 + 20)
1245
= = 10.37
120

8.32
Regional Map Coordinates Truck Round-Trips per Day
Post Office (x,y)

Ybor City (10,5) 3


Davis Island (3,8) 3
Dale-Mabry (4,7) 2
Palma Ceia (15,10) 6
Bayshore (13,3) 5
Temple Terrace (1,12) 3
Hyde Park (5,5) 10

10  3 + 3  3 + 4  2 + 15  6 + 13  5 + 1  3 + 5  10
Cx =
3 + 3 + 2 + 6 + 5 + 3 + 10
255
= = 7.97
32
5  3 + 8  3 + 7  2 + 10  6 + 3  5 + 12  3 + 5  10
Cy =
3 + 3 + 2 + 6 + 5 + 3 + 10
214
= = 6.69
32

Copyright ©2014 Pearson Education


The proposed new facility should be near (7.97, 6.69).

8.33
With equal weights of 1 for each of the 15 factors:
Total Average
Spain 39 2.60
England 52 3.47
Italy 50 3.33
Poland 41 2.73
England is the top choice.

8.34 With weights given, the result became:


Spain 2.55
England 3.55
Italy 3.30
Poland 2.80
England remains the top selection.

CASE STUDY
FINDING A LOCATION FOR ELECTRONICS COMPONENT MANUFACTURING IN ASIA
1. What advantages and disadvantages does each potential location offer?
Singapore
Advantages: labor relatively cheap, good transport infrastructure and incentives offered to stay.
Disadvantages: increasing labor costs and increasing utility costs.
Hong Kong
Advantages: labor consistently cheap and good transport infrastructure.
Disadvantages: no specific disadvantage has been identified in the case but students should attempt to discuss
this further.
Malaysia
Advantages: access to raw materials and natural resources inexpensive labor.
Disadvantages: Concern with frequency of ship visits.

2. What other relevant factors that are not mentioned in the case study might play a role in this decision?
The education of the workforce (both current workforce and future generations) as well as political stability
will impact the decision.

3. Why is transportation infrastructure so important in this decision?


Since ACM is reliant on logistics for raw materials and transporting final products to customers,
transportation costs (both current and expected development of the costs) will doubtlessly have a large impact
on the decision.

4. This is a long-term strategic decision; what factors might change in the next ten to twenty years? How will
this influence the decision?

Copyright ©2014 Pearson Education


Since the plant will “pay for itself” over a long time horizon, decision relevant costs must be examined not
only at their current level but also how this is expected to develop over the horizon. Examples of costs which
are likely to change and whose change would make or break the decision would include labor costs, utility
costs, raw material costs, transport costs. Also other difficult to forecast developments such as exchange rates
and political stability will impact the profitability.

5. Which alternative would you recommend, under which circumstances?

Answers will vary but students should discuss how to approach the problem of selecting the appropriate
location. For example, if possible, students should explore the use of factor-rating method for this problem.

1 VIDEO CASE STUDIES


LOCATING THE NEXT RED LOBSTER RESTAURANT
1. MapInfo has 72 clusters that provide socioeconomic profiling. These profiles (PSYTE) provide interesting
reading and data for class discussion. MapInfo would tell you that the applications are virtually limitless. For
instance, the BusinessMAP database includes the following datasets to aid financial institution location decisions:

▪ ESRI’s current-year and 5-year-out estimates for population, age, race, and income
▪ Branch location, asset, and deposit information from RPM Consulting’s Branchinfo
▪ MarketBank data, with information about deposit and loan potential
▪ National Credit Union Association data on member
assets, loans, etc.
▪ Segmented lifestyle/life change information
▪ D & B listings
▪ Street level maps

Data such as the above helps the location decision by providing current and potential deposit and loan information
as well as information about the competition.
Sources: www.esri.com/bmapfinancial, www.esri.com/archnews, and www.esri.com/partners.
2. Many differences can be identified in an assignment or class discussion, but restaurants want disposable income,
while retail—depending on the type of retail—wants high traffic, and manufacturing wants a focus on costs,
infrastructure, and low taxes.
3. Darden has shied away from urban locations; high location costs do not fit its current model, but Darden has
found fertile ground in first- and second-tier suburban and exurban/small (over 90% of the Red Lobsters are in
these three density classes). Incidentally, in 2010, Darden announced it will begin to open facilities outside the
U.S. and Canada.

2 WHERE TO PLACE THE HARD ROCK CAFE

1. The attached report details the information that Munday collects and analyzes about each site. As such, it
provides the answer to the first question.
2. The ratings of the four cities are
A = 80.5, B = 64.5, C = 71.5, and D = 79.5. So City A is a close first choice over City D. In reality, they are so
close that other considerations may be included, or sensitivity analysis on scores or weights performed.
3. Expansion is the lifeblood of any global organization. Good decisions mean a 10- to 20-year cash flow. Bad
ones mean a 10-plus year commitment to a money-losing location.
4. Hard Rock considers political risk, crime, currency, and other factors in location decisions abroad. In Russia
and Colombia, corruption is so endemic that having a local partner who can understand and handle these issues is a
necessity.

HARD ROCK CAFE


STANDARD MARKET REPORT (OFFSHORE)
Executive Summary

Introduction
◼ Purpose
◼ Product Type (e.g., franchise or company owned, cafe, hotel, casino)
◼ Overview of City/Market (e.g., set context) including history, macro-economic summary

Demographics (Local, City, Region SMSA, or


equivalent)

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◼ Population (Trend analysis, if possible)
1. Number
2. Age
3. Households
4. Average Household Income
◼ Economic Indicators (Trend analysis, if possible)
1. Cost of Living Index (compared to national average)
2. Unemployment
3. Size of Workforce
4. Employment by sector
5. Major employers

Visitor Market
◼ Tourism/Business Visitor (Trend analysis, if possible)
1. Number
2. Origins
3. Length of Stay
4. Average Spend
5. Size of Party
6. Reasons for Visit
7. Frequency of Repeat Visits
8. Seasonality
9. Method of Transportation
◼ Hotels (Trend analysis, if possible)
1. Hotel Room Inventory
2. Occupancy Rates (Annual and monthly for seasonality)
3. Room Rates
4. Function Room Demand
5. Recent Development
6. Future Development
◼ Convention Center (Trend analysis, if possible)
1. Size
2. National Ranking
3. Days Booked per annum
4. Attendance
5. Future Bookings
6. Expansion Plans
7. Major Conventions

Attractions
◼ Entertainment (Including location, seats, attendance)
1. Theaters (Including live performance space)
2. Cinemas (Including IMAX)
3. Theme Parks
4. Zoo/Aquarium
5. Historic Sites
◼ Sports (Capacity, annual attendance, location, age of facility, etc.)
1. Soccer
2. Rugby
3. Baseball
4. Minor Leagues
◼ Retail (Size, tenants, visitors, seasonality)
1. Regional Shopping Centers
2. Discount Shopping Centers
3. Shopping Districts

Transportation
◼ Airport
1. Age
2. Passengers Annually
3. Airlines (Indicate hub city)

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4. Direct Flights
◼ Rail
◼ Road
◼ Sea/River

Restaurants (A selection of restaurants in key areas of the target market)


1. Name
2. Location
3. Type
4. Seats
5. Age
6. Estimated Gross Sales
7. Average check
8. Size of Bar
9. Outside Dining Facilities

Nightclubs (A selection of clubs/casinos etc. in key


areas of the target market)
1. Name
2. Location
3. Type
4. Seats/capacity
5. Age
6. Estimated Gross Sales
7. Average check
8. Size of Bar
9. Music type (e.g., live/disco/combination)

Real Estate Market Overview


1. Introduction
2. Retail Rents
3. Recent Developments
4. Future Developments

HRC Comparable Market Analysis


1. Identify comparable existing HRC markets
2. Explain similarities (e.g. regional population, visitors, hotel rooms, seasonality, etc.)
3. Prepare city P&L spreadsheet analysis

Conclusion
1. Estimate of Gross Food & Beverage Revenue for market in General with backup and comparables
2. Estimate of Gross Merchandise Revenue for market in General with backup and comparables
3. Preferred locations
4. Sizzle (How will we make ourselves special in this market?)

ADDITIONAL CASE STUDY*


SOUTHWESTERN UNIVERSITY: E
1. The five factors appear reasonable. Many others could be included, such as potential parking or concession
revenue, parking, and long-term potential.
2. Option 1 Expand y = $1,000,000 + $1x
Option 2 New stadium y = $5,000,000 + $2x
Option 3 Rent y = $1,000,000 + $750,000 + $1x

$10  15,000 students  5 games

Copyright ©2014 Pearson Education


Weighted
Center
Ada 1.0624
Ardmore 0.4641
Denton 1.824
Durant 0.7372
Greenville 2.3239
McAlester 2.1746
Norman 2.1597
Paris 2.2572
Sherman 1.1183
Wichita Falls 2.6212
Total 16.7426
Weighted Total 7,767.13

3. Based on the survey data, rating “comfort” and “national image” as 1s, “convenience” as a 2, and “cost” and
“guaranteed availability” as 4s, the results (using A = 4, B = 3, C = 2, D = 1, F = 0 for grades):
Sum of Rating’s (Weighted Averages in Parentheses)
Dallas Cowboys
Existing Site New Site
Site
Students 36 (3) 21 (1.75) 35 (2.92)
Boosters 34 (2.83) 23 (1.92) 47 (3.92)
Faculty/staff 43 (3.58) 23 (1.92) 35 (2.92)

Students are almost neutral between the existing site and the Dallas site. Boosters strongly prefer Dallas.
Faculty/staff strongly prefer the existing site. No group ranks the new site near campus as their first or second
choice.
4. The expansion of the existing stadium appears preferable even at annual attendance of 500,000 fans.
5. Gardner used the factor rating method to rate the constituency responses. This was appropriate for evaluating
the qualitative values. He should consider weighting the criteria as the administration did ultimately.

Location, Small DC in Texas

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Another random document with
no related content on Scribd:
institutional. He is fond of handling his topics analytically. His
numerous divisions and subdivisions remind us of the scholastic
Richard of St. Victor, but Ruysbroek, less methodical by nature, and
less disciplined, more frequently loses sight of his own distinctions.
The subject itself, indeed, where it possesses the writer, repudiates
every artificial treatment. While he specifies with minuteness the
stages of the mystical ascent, Ruysbroek does not contend that the
experience of every adept in the contemplative life must follow the
precise order he lays down. (Geistl. Hochzeit, ii. § 30, p. 71.) He
loves to ally the distinctions he enumerates in the world of nature, in
the operations of grace, in the heavenly state, and in the Divine
Being, by a relationship of correspondence. Thus the seven planets
and the seven gifts of the Holy Spirit answer to each other. The
Empyrean in the external world corresponds to Pure Being in the
divine nature, to the Spark of the soul in man, and to the
Contemplative stage of his spiritual experience. This scheme of
analogies, incidental in Ruysbroek and the earlier mystics, makes up
almost the whole system of mystics like Behmen and Swedenborg.
His elaborate comparison of the operations of grace to a fountain
with three streams (one of which refreshes the memory, another
clarifies the understanding, while a third invigorates the will),
resembles strikingly the fanciful method of Madame Guyon in her
Torrents, and of St. Theresa in her Degrees of Prayer. (Geistl.
Hochzeit, xvii. § 36, p. 80.) The mysticism of Ruysbroek is less
sensuous than that of the poetical Suso. Beyond question the higher
elevation of the contemplative life must have been a welcome refuge
to many devout minds wearied with vain ritual, penance, and routine.
As acknowledged contemplatists, they could escape without scandal
from contact with the grosser machinery of their religion. Accordingly,
to claim superiority to means and modes was by no means always
the arrogant pretension it may seem to us. Tauler’s ‘state above
grace’ was the ark of an unconscious Protestantism. Where the
means were made the end, wisdom forsook them, and rejoiced to
find that the name of mystic could shelter spirituality from the
dangers of the suspected heretic. Ruysbroek, however, felt the want
of such a protection for freer thought, much less than did Tauler and
some of his more active followers.
CHAPTER VIII.

Unde planctus et lamentum?


Quid mentem non erigis?
Quid revolvis monumentum?
Tecum est quem diligis;
Jesum quæris, et inventum
Habes, nec intelligis.

Unde gemis, unde ploras?


Verum habes gaudium.
In te latet quod ignoras
Doloris solatium.
Intus habes, quæris foras
Languoris remedium.[157]

Hymn of the Fifteenth Century.

Vivo sin vivir mi,


Y tan alta vida espero
Que muero porque no muero.[158]

St. Theresa.

On the next evening Atherton resumed his reading as follows:—

Chronicle of Adolph Arnstein, continued.

1354. March. St. Brigitta’s Day.—A fortnight ago this day, there
came to me, to buy as goodly a battle-axe as could be made,
young Sir Ulric—the same who, at the tourney the other day,
graced his new-won spurs by such gallant feats of arms. We fell
into talk about the great floods which have everywhere wrought
of late such loss of life, and cattle, and husbandry. He said he
had but the day before saved the life of a monk who, with his
companion, had been carried beyond his depth by the force of
the water, as they were wading across the fields.
‘The one most in danger,’ said Ulric, ‘had a big book in his
bosom. As he flounders about, out tumbles the book; he lets go
his staff, and makes after it; and souse he goes, over head and
ears in a twinkling. The other stands stock still, and bawls out to
me for help. I, just sworn to succour the distressed and be true to
the Church, spur Roland, plunge in, and lift out the draggled,
streaming father by the hood, half throttled and half drowned, but
clutching the book in his frozen fingers as though it were a
standard or a fair lady’s token. I lay him before me across my
horse; his fellow catches hold of my stirrup, and we land on the
rising ground. When my monk had somewhat come to himself,
he pours as many blessings on my head as there were drops
running from his habit; not, he said, for saving his poor life
merely, but that the book was safe. He had just finished writing it
—there was not another copy in the world—the devil had an
especial spite against it—no doubt the fiend had raised the
waters to destroy the seed which fed men’s souls as well as the
grain which nourished their bodies; but the faithful God had sent
me, like his angel, just in time for rescue. I saw them in safety,
and he promised to remember me in his orisons. His name, I
think he said, was Seusse or Suso.’[159]
So Suso is in Strasburg, thought I,—the man I have long wished
to see. I lost no time in inquiring after him at the Dominican
convent. There I found, with no small satisfaction, that he was
none the worse for his mishap; saw him several times, and
persuaded him, at last, to honour for a few days my unworthy
roof. He has been with us for a week, but must pursue his
journey to-morrow. On my part, I could tell him news about
Ruysbroek, and Tauler, and some of his old friends at Cologne.
On his, he has won the love of all the household by his gentle,
affectionate nature, blessed us by his prayers, and edified every
heart by his godly conversation. My good wife would love him, if
for nothing else, because he so loves the little ones. They love
him because he always goes with them to feed the old falcon,
and to throw out crumbs for the sparrows, because he joins them
in petting Argus, and talks so sweetly about the Virgin and Child,
and the lilies and violets and roses, and the angels with gold-
bright wings that live in heaven. Those three tall fellows, my
boys, fonder of sword-play, wrestling, and camping the bar, than
of churchmen or church-going, will listen to him by the hour,
while he tells of his visions, his journeys, his dangers, and his
deliverances. Rulman Merswin also came over and spent two
evenings with us. He talked much with Suso about Master
Eckart. Suso was full of reminiscences and anecdotes about
him. In his youthful days he had been his disciple at Cologne.
‘At one time,’ said Suso, ‘I was for ten years in the deepest
spiritual gloom. I could not realize the mysteries of the faith. A
decree seemed to have gone forth against me, and I thought I
was lost. My cries, my tears, my penance,—all were vain. I
bethought me at last of consulting my old teacher, left my cell,
sailed down the Rhine, and at Cologne the Lord gave to the
words of the master such power that the prison-doors were
opened, and I stepped out into the sunshine once more. Neither
did his counsel cease with life. I saw him in a vision, not long
after his death. He told me that his place was in the ineffable
glory, and that his soul was divinely transformed in God. I asked
him, likewise, several questions about heavenly things, which he
graciously answered, strengthening me not a little in the arduous
course of the inner life of self-annihilation. I have marvelled often
that any, having tasted of the noble wine of his doctrine, should
desire any of my poor vintage.’[160]
In talking with the brethren at the convent, while Suso was their
guest, I heard many things related concerning him altogether
new to me. I was aware that he had been greatly sought after as
a preacher in German throughout the Rhineland, and stood high
in the esteem of holy men as a wise and tender-hearted guide of
souls. That he was an especial friend of the Friends of God
wherever he found them, I knew. When at Cologne I heard
Tauler praise a book of his which he had in his possession,
called the Horologe of Wisdom.[161] Something of the fame of his
austerities, conflicts, and revelations, had come to my ears, but
the half had not been told me.
It seems that his life, from his eighteenth to his fortieth year, was
one long self-torture. The Everlasting Wisdom (who is a tree of
life to them that lay hold upon her, more precious than rubies,
and with whom are durable riches and righteousness)
manifested herself to him. This was his call to the spiritual life.
He seemed to behold her—a maiden, bright as the sun,—her
crown, eternity;—her raiment, blessedness;—her words,
sweetness; unknown, and yet well known; near, and yet afar off;
smiling on him, and saying, ‘My son, give me thine heart!’ From
that time forth he dedicated his life to her service. He called
himself the servant of the Eternal Wisdom, armed his soul as her
knight, wooed her as his heart’s queen, bore without a murmur
the lover’s pangs of coyness, doubt, and distance, with all the
hidden martyrdom of spiritual passion.[162]
But the rose of his love, as he is wont to term it, had fearful
thorns. I heard with a shudder of what he underwent that he
might crush to death his naturally active, buoyant, impulsive
temperament. Day and night he wore a close-fitting shirt in which
were a hundred and fifty sharp nails, the points turned inward on
the flesh. In this he lay writhing, like a mangled worm; and lest in
his sleep he should find some easier posture, or relieve with his
hands in any way the smart and sting that, like a nest of vipers,
gnawed him everywhere, he had leather gloves made, covered
with sharp blades, so that every touch might make a wound.
Time after time were the old scars opened into new gashes. His
body appeared like that of one who has escaped, half dead, from
the furious clutches of a bear. This lasted sixteen years, till a
vision bade him cease.
Never satisfied with suffering, he devised a new kind of
discipline. He fashioned a wooden cross, with thirty nails whose
points stood out beyond the wood, and this he wore between his
shoulders underneath his garments, till his back was one loathly
sore. To the thirty nails he added afterwards seven more, in
honour of the sorrows of the Mother of God. When he would
administer the discipline, he struck a blow on this cross with his
fist, driving the points into his wounded flesh. He made himself,
moreover, a scourge, one of the iron tags of which was bent like
a fisher’s hook, and with this he lashed himself till it broke in his
hand. For many years he lay at nights in a miserable hole he
called his cell, with an old door for his bed, and in the depth of
winter thought it sin to approach the stove for warmth. His
convent lay on a little island where the Rhine flows out of the
Lake of Constance. He could see the sparkling water on every
side. His wounds filled him with feverish thirst; yet he would often
pass the whole day without suffering a drop to moisten his lips.
His recompence was the vision in which, at one time, the Holy
Child brought him a vessel of spring-water; and, at another, Our
Blessed Lady gave him to drink from her own heart. Such, they
tell me, was his life till his fortieth year, when it was signified to
him that he should remit these terrible exercises. He is now, I
believe, little more than fifty years old—the mere wreck of a man
to look at; but with such life and energy of spirit that, now he hath
begun to live more like other people, he may have a good thirty
years before him still.[163]
I questioned him about his book called the Horologe of Wisdom,
or Book of the Eternal Wisdom, for it hath gone abroad under
both names. He said it was finished in the year 1340, since
which time he hath written sundry other pieces. He declared to
me that he wrote that treatise only in his most favoured
moments, himself ignorant and passive, but under the immediate
impulse and illumination of the Divine Wisdom. He afterwards
carefully examined all he had written, to be sure that there was
nothing in his pages other than the holy Fathers had taught, and
the Church received.[164] Methought, if he was sure of his
inspiration, he might have spared himself this pain, unless the
Holy Spirit could in some sort gainsay his own words.
He is strongly moved by music,—but what must have been his
rapture to hear the hymns of the heavenly host! He has seen
himself surrounded by the choir of seraphim and cherubim. He
has heard a voice of thrilling sweetness lead the response, ‘Arise
and shine, Jerusalem,’ and has wept in his cell with joy to hear
from angels’ lips, at early dawn, the soaring words, ‘Mary, the
morning star, is risen to-day.’ Many a time has he seen a
heavenly company sent down to comfort him. They have taken
him by the hand, and he has joined in spirit in their dance,—that
celestial dance, which is a blissful undulation to and fro in the
depths of the divine glory. One day, when thus surrounded in
vision, he asked a shining prince of heaven to show him the
mode in which God had His secret dwelling in his soul. Then
answered the angel, ‘Take a gladsome look into thine inmost,
and see how God in thy loving soul playeth His play of love.’
Straightway (said Suso to me) I looked, and behold the body
about my heart was clear as crystal, and I saw the Eternal
Wisdom calmly sitting in my heart in lovely wise: and, close by
that form of beauty, my soul, leaning on God, embraced by His
arm, pressed to His heart, full of heavenly longing, transported,
intoxicated with love![165]
We were talking one evening of May-day eve, and asking Suso
wherein their custom of celebrating that festival differed from our
own. He said that in Suabia the youths went out, much in our
fashion, singing songs before the houses of the maidens they
loved, and craving from them garlands in honour of the May. He
told us how he, in like manner, besought Our Lady with prayers
and tears that he might have a garland from her Son, the Eternal
Wisdom. It was his wont, he said, to set up a spiritual May-pole
—the holy cross, that May-bough of the soul, blossoming with
grace and beauty. ‘Before this,’ he continued, ‘I performed six
venias,[166] and sung the hymn, ‘Hail, holy cross!’ thereafter
praising God somewhat thus:—
‘Hail! heavenly May of the Eternal Wisdom, whose fruit is
everlasting joy. First, to honour thee, I bring thee, to-day, for
every red rose a heart’s love; then, for every little violet a lowly
inclination; next, for every tender lily, a pure embrace; for every
bright flower ever born or to be born of May, on heath or
grassplot, wood or field, tree or meadow, my heart doth bring
thee a spiritual kiss; for every happy song of birds that ever sang
in the kindly May, my soul would give thee praises inexhaustible;
for every grace that ever graced the May, my heart would raise
thee a spiritual song, and pray thee, O thou blest soul’s May! to
help me so to glorify thee in my little time below, that I may taste
thy living fruit for evermore above!‘[167]
The beginning of a new stage of trial was made known to him by
the appearance, in a vision, of an angel, bringing him the attire
and the shoes of a knight. With these he was to gird himself for
new and yet more terrible conflicts. Concerning his own
austerities he never speaks, nor does he show to any one the
letters of the name of Jesus, which he is said to have cut with a
style upon his bosom. But of the sufferings which came upon him
from without, he talks freely. At one time, when in Flanders, he
was brought before the chapter on a charge of heresy; but his
enemies gained not their wicked end.[168] He was in greatest
danger of his life shortly before the coming of the plague, when
the fearful rumour was abroad about the poisoning of the wells.
He himself told me the story, as follows:—
‘I was once despatched on a journey in the service of the
convent, and they gave me as my companion a half-witted lay-
brother. We had not been many days on the road, when, one
morning, having early left our quarters for the night, we arrived,
after a long, hungry walk through the rain, at a village on the
banks of the Rhine. It happened to be the fair-time. The street
was full of booths and stalls, horses and cattle, country-folk,
players, pedlers, and idle roystering soldiers. My fellow-traveller,
Peter, catches sight of a sign, and turns in straightway to warm
himself at the fire, telling me I can go on, do what I have to do,
and I shall find him there. As I learnt after, he sits himself down
to table with a ruffianly set of drovers and traders that had come
to the fair, who first of all make him half-drunk, and then seize
him, and swear he has stolen a cheese. At this moment there
come in four or five troopers, hardened fellows, ripe for any
outrage, who fall on him also, crying, ‘The scoundrel monk is a
poisoner.’ The clamour soon gathers a crowd.
‘When Peter sees matters at this pass, he piteously cries out to
them to loose him, and stand still and listen: he will confess
everything. With that they let go their hold, and he, standing
trembling in the midst of them, begins: ‘Look at me, sirs,—you
see I am a fool; they call me silly, and nobody cares for what I
say: but my companion, he is a wise man, so our Order has
given him the poison-bag, and he is to poison all the springs
between here and Alsace. He is gone now to throw some into
the spring here, to kill every one that is come to the fair. That is
why I stayed here, and would not go with him. You may be sure
that what I say is true, for you will see him when he comes with a
great wallet full of bags of poison and gold pieces, which he and
the Order have received from the Jews for this murderous
business.’
‘At these words they all shouted, ‘After the murderer! Stop him!
Stop him!’ One seized a spear, another an axe, others the first
tool or weapon they could lay hands on, and all hurried furiously
from house to house, and street to street, breaking open doors,
ransacking closets, stabbing the beds, and thrusting in the straw
with their swords, till the whole fair was in an uproar. Some
friends of mine, who heard my name mentioned, assured them
of my innocence of such an abominable crime, but to no
purpose. At last, when they could nowhere find me, they carried
Peter off to the bailiff, who shut him up in the prison.
‘When I came back to the inn, knowing nothing of all this, the
host told me what had befallen Peter, and how this evil rumour
had stirred up the whole fair against me. I hastened off to the
bailiff to beg Peter’s release. He refused. I spent nearly the
whole day in trying to prevail with him, and in going about in vain
to get bail. At last, about vesper time, with a heavy sum of
gulden I opened the heart of the bailiff and the doors of the jail.
‘Then my greatest troubles began. As I passed through the
village, hoping to escape unknown, I was recognised by some of
the mob, and in a moment they were swarming about me. ‘Down
with the poisoner!’ they cried. ‘His gold shall not serve him with
us as it did with the bailiff.’ I ran a little way, but they closed me in
again, some saying, ‘Drown him in the Rhine;’ others answering,
‘No, burn him! he’ll poison the whole river if you throw him in.’
Then I saw (methinks I see him now) a gigantic peasant in a
russet jerkin, forcing his way through the crowd, with a pike in his
hand. Seizing me by the throat with one hand, and flourishing the
pike in the other, he shouted, ‘Hear me, all of you. Let me spit
him with my long pike, like a poisonous toad, and then plant it in
this stout hedge here, and let the caitiff howl and twist in the air
till his soul goes home to the devil. Then every one that goes by
will see his withered carcass, rotting and wasting, and sink him
deeper down in hell with curses. Come on,—it serves him right.’
‘My brain swam round. I closed my eyes. I expected the next
instant to feel the iron. By some merciful interposition, the wretch
was not suffered to execute his purpose. I thought I saw some of
the better sort looking on with horror-stricken faces, but they
dared not interfere. The women shrieked and wrung their hands.
I made my way from one to another of those who seemed least
pitiless, beseeching them to save me. Heaven must have heard
my cries, though man did not. They stood round watching me,
disputing with horrid oaths among themselves what they should
do. At length—as I had sunk on my knees under the hedge,
praying for deliverance—I saw a priest, more like an angel than a
man, mightily thrusting them from side to side, and when he
reached me, laying his hand on my arm, he looked round on the
ring of savage faces, and threatened them with the hottest
curses of the Church if they harmed a hair upon the head of her
servant; outvoiced their angry cries with loud rebukes of their
cowardice, cruelty, and sacrilege, and led me out safely through
them all. He brought me to his house, made fast the doors,
refreshed and sheltered me for the night, and by the earliest
dawn I was away and safe upon my journey, while that abode of
the wicked was sunk in its drunken sleep. I keep the anniversary
of that dreadful day, and never shall I cease to praise the
goodness which answered my prayer in the hour of need, and
delivered me as a bird from the snare of the fowler.[169]
‘On one other occasion only,’ continued Suso, ‘did I taste so
nearly the bitterness of death.’
We begged him to tell us the adventure, and so he did,
somewhat thus—
‘I was once on my way home from Flanders, travelling up the
Rhine. A great feebleness and sickness had been upon me for
some days, so that I could not walk fast, and my companion,
young and active, had gone on about two miles ahead. I entered
an old forest whose trees overhung the steep river bank. It was
evening, and it seemed to grow dark in a moment as I entered
the chilling shadow of a wood, in which many a defenceless
passenger had been robbed and slain. I had gone on deeper and
deeper into the growing gloom, the wind among the pines
sounding like a hungry sea. The fall of my own footsteps seemed
like the tread of one coming after me. I stood still and hearkened.
It was no one; when suddenly I saw, not far off among the trees,
two persons, a man and a woman, talking together and watching
me. I trembled in every limb, but I made the sign of the cross,
and passed on. Soon I heard quick footsteps behind me. I turned
—it was the woman. She was young and fair to look on. She
asked my name, and when she learnt it, said she knew and
reverenced me greatly, told me how that robber with whom I saw
her had forced her to become his wife, and prayed me there and
then to hear her confession.
‘When I had shriven her, think how my fear was heightened to
see her go back and talk long and earnestly with the robber,
whose brow grew dark, as he left her without a word, and
advanced gloomily towards where I stood. It was a narrow
pathway; on the one side the forest, on the other the precipice,
sheer down to the rapid river. Alas, thought I, as my heart sank
within me, now I am lost. I have not strength to flee: no one will
hear a cry for help: he will slay me, and hide the body in the
wood. All was still. I listened in vain for the sound of a boat, a
voice, or even the bark of a dog. I only heard the feet of the
outlaw and the violent beating of my own heart. But, lo! when he
approached me, he bowed his knee, and began to confess.
Blessed Mary, what a black catalogue! While he spake I heard,
motionless, every word of the horrible recital, and yet I was all
the time listening for rescue, watching his face, and minutely
noting every little thing about his person. I remember the very
graining of the wood of his lance which he laid aside on the
grass when he knelt to me—the long knife in his belt—his frayed
black doublet—his rough red hair, growing close down to his
shaggy eyebrows—two great teeth that stood out like tusks—and
his hands clasped, covered with warts, and just the colour of the
roots of the tree by which I stood. Even during those fearful
moments, I can call to mind distinctly how I marked a little
shining insect that was struggling among the blades of grass,
climbing over a knot of wood, and that got upon a fir-cone and
fell off upon its back.
‘After revealing to me crimes that made my blood run cold, he
went on to say, ‘I was once in this forest, just about this hour of
the day, on the look-out for booty as I was this evening, when I
met a priest, to whom I confessed myself. He was standing just
where you are now, and when my shrift was ended, I drew out
this knife, stabbed him to the heart, and rolled his body down
there into the Rhine.’ When I heard this, the cold sweat burst out
upon my face; I staggered back giddy, almost senseless, against
the tree. Seeing this, the woman ran up, and caught me in her
arms, saying, ‘Good sir, fear nothing, he will not kill you.’
Whereat the murderer said, ‘I have heard much good of you, and
that shall save your life to-day. Pray for me, good father, that,
through you, a miserable sinner may find mercy in his last hour.’
At this I breathed again, and promised to do as he would have
me. Then we walked on some way together, till they parted from
me, and I reached the skirts of the wood, where sat my
companion waiting. I could just stagger up to him, and then fell
down at his side, shivering like a man with the ague. After some
time I arose, and we went on our way. But I failed not, with strong
inward groaning, to plead with the Lord for the poor outlaw, that
he might find grace and escape damnation. And, in sooth, I had
so strong an assurance vouchsafed to me of God, that I could
not doubt of his final salvation.’
With stories such as these of what befel himself, and many
others, whom he knew in Suabia and the Oberland, or met with
on his journeys, the holy man whiled away our windy March
nights by the ingle. Very edifying it was to hear him and Rulman
Merswin talk together about the higher experiences of the inward
life.
Concerning the stages thereof, Suso said that the first consisted
in turning away from the world and the lusts of the flesh to God:
the second, in patient endurance of all that is contrary to flesh
and blood, whether inflicted of God or man: the third, in imitating
the sufferings of Christ, and forming ourselves after his sweet
doctrine, gracious walk, and pure life. After this, the soul must
withdraw itself into a profound stillness, as if the man were dead,
willing and purposing nought but the glory of Christ and our
heavenly Father, and with a right lowly demeanour toward friend
and foe. Then the spirit, thus advanced in holy exercise, arriveth
at freedom from the outward senses, before so importunate; and
its higher powers lose themselves in a supernatural sensibility.
Here the spirit parts with its natural properties, presses within the
circle which represents the eternal Godhead, and reaches
spiritual perfection. It is made free by the Son in the Son.
‘This I call,’ he said, ‘the transit of the soul,—it passes beyond
time and space, and is, with an amorous inward intuition,
dissolved in God. This entrance of the soul banishes all forms,
images, and multiplicity; it is ignorant of itself and of all things; it
hovers, reduced to its essence, in the abyss of the Trinity. At this
elevation there is no effort, no struggle; the beginning and the
end are one.[170] Here the Divine Nature doth, as it were,
embrace, and inwardly kiss through and through, the soul; that
they may be for ever one.[171] He who is thus received into the
Eternal Nothing is in the Everlasting Now, and hath neither
before nor after. Rightly hath St. Dionysius said that God is Non-
being—that is, above all our notions of being.[172] We have to
employ images and similitudes, as I must do in seeking to set
forth these truths, but know that all such figures are as far below
the reality as a blackamoor is unlike the sun.[173] In this
absorption whereof I speak, the soul is still a creature, but, at the
time, hath no thought whether it be creature or no.’[174]
Suso repeated several times this saying—‘A man of true self-
abandonment must be unbuilt from the creature, in-built with
Christ, and over-built into the Godhead.’[175]
We bid adieu with much regret to this excellent man, and his visit
will abide long in our memory. We drew from him a half promise
that he would come to see us yet again.
May, 1354.—Oh, most happy May! My brother Otto hath
returned, after trading to and fro so long in foreign parts. He is
well and wealthy, and will venture forth no more. What store of
marvellous tales hath he about the East! What hairs-breadth
escapes to relate, and what precious and curious things to show!
Verily, were I to write down here all he hath to tell of, I might be
writing all my days.
Only one thing will I note, while I think of it. He visited Mount
Athos, now fourteen years ago: he described to me the beauty of
the mountain, with its rich olives and lovely gardens, and the
whole neighourhood studded with white convents and
hermitages of holy men. Some of the monasteries were on rocks
so steep that he had to be drawn up by a rope in a basket to
enter them. The shrines were wondrous rich with gold and silver
and precious stones. But nowhere, he said, was he more
martyred by fleas. When he was there, a new doctrine or
practice which had sprung up among the monks (taught, it is
said, by a certain Abbot Simeon), was making no small stir.
There was to be a synod held about it at that time in
Constantinople. It seems that some of the monks (called, if I
mistake not, Hesychasts) held that if a man shut himself up in a
corner of his cell, with his chin upon his breast, turning his
thoughts inward, gazing towards his navel, and centering all the
strength of his mind on the region of the heart; and, not
discouraged by at first perceiving only darkness, held out at this
strange inlooking for several days and nights, he would at length
behold a divine glory, and see himself luminous with the very
light which was manifested on Mount Tabor. They call these
devotees Navel-contemplators. A sorry business! All the monks,
for lack of aught else to do, were by the ears about it,—either
trying the same or reviling it.[176]
Methought if our heretics have their extravagances and utmost
reaches of mystical folly here, there are some worse still among
those lazy Greeks.

Kate. And is that the end of Arnstein’s journal?


Atherton. No more has come down to posterity.
Mrs. Atherton. That last piece of news from Mount Athos seems
quite familiar to me. I have just been reading Curzon’s Monasteries
of the Levant, and thanks to him, I can imagine the scenery of the
mountain and its neighourhood: the Byzantine convents, with their
many little windows rounded at the top, the whole structure full of
arches and domes,—the little farms interspersed, with their white
square towers and cottages of stone at the foot,—the forests of
gigantic plane trees, with an underwood of aromatic evergreens,—
flowers like those in the conservatory everywhere growing wild,—
waterfalls at the head of every valley, dashing down over marble
rocks,—and the bells, heard tinkling every now and then, to call the
monks to prayer.
Willoughby. The crass stupidity of those Omphalopsychi shows
how little mere natural beauty can contribute to refine and cultivate,
—at any rate when the pupils are ascetics. The contemporary
mysticism of the East looks mean enough beside the speculation,
the poetry, and the action of the German mystics of the fourteenth
century. It is but the motionless abstraction of the Indian Yogi over
again.
Atherton. Yet you will be unjust to the Greek Church (which has
little enough to boast of) if you reckon this gross materialist Quietism
as the only specimen of mysticism she has to show during this
period. There was a certain Cabasilas, Archbishop of Thessalonica,
[177]
a contemporary of our German friends, an active man in the
political and religious movements of the time, whose writings exhibit
very fairly the better characteristics of Byzantine mysticism. His
earnest practical devotion rests on the basis of the traditional
sacerdotalism, but he stands between the extremes of the objective
and the subjective mysticism, though naturally somewhat nearer to
the former. He presents, however, nothing original to detain us;—so
let us away to supper.

Note to page 354.

The following passage, placed in the mouth of the Everlasting


Wisdom may serve as a further specimen of the sensuous and florid
cast of Suso’s language:—
‘I am the throne of joy, I am the crown of bliss. Mine eyes are so
bright, my mouth so tender, my cheeks so rosy-red, and all my form
so winning fair, that were a man to abide in a glowing furnace till the
Last Day, it would be a little price for a moment’s vision of my beauty.
Behold! I am so beauteously adorned with a robe of glory, so
delicately arrayed in all the blooming colours of the living flowers—
red roses, white lilies, lovely violets, and flowers of every name, that
the fair blossoms of all Mays, and the tender flowerets of all sunny
fields, and the sweet sprays of all bright meadows, are but as a
rugged thistle beside my loveliness.’ (Then he breaks into verse):—

‘I play in the Godhead the play of joy,


And gladden the angel host on high
With a sweetness such that a thousand years
Like a vanishing hour of time run by.

‘... Happy he who shall share the sweet play, and tread at my side
the joy-dance of heaven for ever in gladsome security. One word
from my sweet mouth surpasses all the songs of angels, the sound
of all harps, and all sweet playing on stringed instruments.... Lo! I am
a good so absolute that he who hath in time but one single drop
thereof finds all the joy and pleasure of this world a bitterness,—all
wealth and honour worthless. Those dear ones who love me are
embraced by my sweet love, and swim and melt in the sole Unity
with a love which knows no form, no figure, no spoken words, and
are borne and dissolved into the Good from whence they sprang,’
&c.—Leben, cap. vii. p. 199.
The following is a sample of Suso’s old Suabian German, from the
extracts given by Wackernagel, p. 885:—
‘Entwürt der ewigen wisheit. Zuo uallende lon lit an sunderlicher
frœd. die diu sel gewinnet von sunderlichen vnd erwirdigen werken
mit dien si hie gesiget hat. alz die hohen lerer, die starken marterer.
Vnd die reinen iungfrowen. Aber wesentliche lon. lit an schöwlicher
ver einung der sele mit der blossen gotheit. Wan e geruowet si
niemer, e si gefueret wirt über alle ir krefte vnd mugentheit. vnd
gewiset wirt in der personen naturlich wesentheit. Vnd in dez wesens
einvaltig blosheit. Vnd in dem gegenwurf vindet si denn genuegde
vnd ewige selikeit. Vnd ie ab gescheidener lidiger usgang. ie frier uf
gang., Vnd ie frier uf gang. ie neher in gang. in die wilden wuesti.
vnd in daz tief ab gründe der wiselosen gotheit in die siu versenket
ver swemmet vnd uer einet werdent. daz siu nit anderz mugen
wellen denn daz got wil, vnd daz ist daz selb wesen daz do got ist.
daz ist daz siu selig sint. von genaden. als er selig ist von nature.
[Answer of the Everlasting Wisdom.—Adventitious reward consists in
a particular joy which souls receive for particular worthy deeds
wherein they have here been conquerors,—such, for example, are
the lofty teachers, the stout martyrs, and the pure virgins. But
essential reward consists in contemplative union of the soul with the
bare Godhead: for she resteth not until she be carried above all her
own powers and possibility, and led into the natural essentiality of
the Persons, and into the simple absoluteness of the Essence. And
in the reaction she finds satisfaction and everlasting bliss. And the
more separate and void the passage out (of self), the more free the
passage up; and the freer the passage up, the nearer the passage
into the wild waste and deep abyss of the unsearchable Godhead, in
which the souls are sunk and dissolved and united, so that they can
will nothing but what God wills, and become of one nature with God,
—that is to say, are blessed by grace as He is blessed by nature.]
CHAPTER IX.

Di Meistere sprechen von zwein antlitzen der sêle. Daz eine


antlitze ist gekart in dise werlt. Daz ander antlitze ist gekart di
richte in got. In diseme antlitze lûchtet und brennet got
êwiclîchen, der mensche wizzes oder enwizzes nicht.[178]—
Hermann von Fritzlar.

Kate. I should like to know what became of our mysterious ‘Layman,’


Nicholas of Basle.
Atherton. He lived on many years, the hidden ubiquitous master-
spirit of the Friends of God; expending his wealth in restless rapid
travels to and fro, and in aiding the adherents of the good cause;
suddenly appearing, now in the north and now in the south, to
encourage and exhort, to seek out new disciples and to confirm the
old; and again vanishing as suddenly, concealing his abode even
from his spiritual children, while sending them frequent tracts and
letters by his trusty messenger Ruprecht; growing ever more sad
and earnest under repeated visions of judgment overhanging
Christendom; studying the Scriptures (which had opened his eyes to
so much of Romanist error) somewhat after the old Covenanter
fashion, with an indiscriminate application of Old Testament history,
and a firm belief that his revelations were such as prophets and
apostles enjoyed,—till, at last, at the close of the century, he was
overtaken at Vienna by the foe he had so often baffled, and the
Inquisition yet more ennobled a noble life by the fiery gift of
martyrdom.[179]
Gower. I can well imagine what a basilisk eye the Inquisition must
have kept on these lay-priests—these indefatigable writers and
preachers to the people in the forbidden vernacular—these Friends
of God, Beghards, and Waldenses; and on those audacious
Ishmaels, the Brethren of the Free Spirit, most of all. I fancy I see it,
lurking always on the edge of any light, watching and watching, as
they say the Indian lizard does, crouched in the shadow just outside
the circle of light a lamp makes upon the ceiling, to snatch up with its
arrowy tongue the moths which fly toward the fascinating brightness.
Willoughby. And do not let us forget that even those pantheistic
Brethren of the Free Spirit, with all their coarseness and violence of
exaggeration, held at least some little truth, and might plead a large
excuse. If some of them broke blindly through all restraint, they
made at any rate a breach in priestcraft better used by better men.—
Gower.—Just as the track where buffaloes have made their huge
crashing way through the forest, has often guided the hunter of the
backwoods.
Atherton. We must not think that the efforts of such a man as
Nicholas were fruitless, whatever the apparent success of his
persecutors.—
Gower.—Though history has paid him too little attention, and
though the Inquisition paid him too much. How I love to find
examples of that consoling truth that no well-meant effort for God
and man can ever really die—that the relics of vanished, vanquished
endeavours are gathered up and conserved, and by the spiritual
chemistry of Providence transformed into a new life in a new age, so
that the dead rise, and mortality puts on immortality. The lessons
such men scattered, though they might seem to perish, perpetuated
a hidden life till Luther’s time;—like the dead leaves about the winter
tree, they preserved the roots from the teeth of the frost, and
covered a vitality within, which was soon to blossom on every bough
in the sunshine of the Reformation.
Atherton. Our fourteenth century, so full of mysticism both in East
and West, has some other mystical products to show, principally of
the visionary, theurgic species. There is St. Brigitta, a widow of rank,
leaving her Swedish pine forests to visit Palestine, and after
honouring with a pilgrimage every shrine and relic in southern
Europe, fixing her residence at Rome, to the great pecuniary
advantage of the faithful there. She writes a discourse on the
Blessed Virgin at the dictation of an angel, who visited her punctually
for the purpose: indites bombastic invocations to the eyes, ears, hair,
chin, &c., of the Saviour; and ditto to ditto of the Virgin; and, what

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