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Chapter 08 - Location Planning and Analysis
CHAPTER 08
LOCATION PLANNING AND ANALYSIS
Teaching Notes
Facility location refers to the location of a service or manufacturing facility with respect to customers,
suppliers, and other existing facilities such that it allows the company to gain a competitive and/or
strategic edge. In making a location decision, both tangible costs (e.g., cost of operating the facility; cost
of land (if it applies); cost of labor, taxes, and utilities; cost of inbound and outbound transportation) and
intangible costs (e.g., availability of qualified labor and labor climate) must be considered. Because the
location decision usually involves making a large capital investment, it not only affects the firm’s ability
to compete but also has long-term strategic implications. Therefore, in making the location decision, we
should consider issues related to marketing, production, transportation and other relevant costs as well as
the strategy of the organization. The importance of various factors in relation to the location decision will
vary between service and manufacturing organizations and from industry to industry as well.
Reading: Innovative MCI Unit Finds Culture Shock in Colorado Springs
1. The most severe fallouts from the move to Colorado were:
a. Numerous key executives and engineers, and hundreds of the division’s minority
population refused to relocate, or fled Colorado Springs soon after relocating.
b. The move isolated engineers from top management and from marketing colleagues at
headquarters, undermining collaboration.
c. The professionals whom Mr. Liebhaber hoped to recruit proved difficult and expensive to
woo to Colorado Springs.
d. Thousands of workers (more than expected) took advantage of the relocation package,
undercutting plans to recruit lower-cost employees in Colorado.
e. The move cost more than $200 million, far more than anticipated, and most of the
expected savings never materialized.
2. Mr. Liebhaber should have sought out more information by conducting surveys of workers,
managers, and engineers asking them for the following information: how likely they were to
move, ratings of factors that would affect their decision to move, ratings of factors that they
valued about their current work environment, and ratings about factors that they considered
important for quality of life issues. Mr. Liebhaber seems to have considered his own quality of
life and work issues only.
Reading: Site Selection Grows Up: Improved Tech Tools Make the Process
Faster, Better
1. Tech tools have improved the process of site selection by providing in-depth market research
analyzing traffic volumes, concentration of other retail businesses, and demographic data. In
addition, some of these tools provide aerial photographs of proposed sites and surrounding areas.
Some tools allow users to plug in the site characteristics criteria and a proposed location and then
push a button to receive output such as maps, reports, and models. Other tools provide market
optimization software that informs the user on how best to carve out territories, helping to
eliminate encroachment and cannibalization.
2. Franchisors also can use geoVue and other similar tools to analyze changes in performance,
demographics, or other factors that would warrant closing or relocating a facility.
8-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Answers to Discussion and Review Questions

1. Location decisions can have an impact on access to markets, costs (including materials, labor,
rent, construction, and transportation), quality of work life (e.g., community-related factors), and
growth potential.
2. The fact that similar businesses are located widely underscores the futility of searching for that
“one best” location. However, it does not necessarily follow that little attention is needed in
finding a suitable location. Many organizations that have not been successful are no longer in
business (e.g., service stations in poor locations, motels bypassed by an expressway, and so on).
Moreover, others currently in operation might be much more profitable in another location. For
some businesses (e.g., restaurants) regional factors are not particularly significant, and even
community-related factors are of little importance. However, site-related factors are extremely
important. Similarly, there are numerous examples of firms that are less affected by community
or site factors than they are by regional factors (i.e., nearness to market, labor, or raw materials).
3. Important community factors include size of the community, public transportation, schools,
recreational facilities, libraries, restaurants, shopping centers, cultural and entertainment
selections, and so on.
4. Manufacturing and non-manufacturing organizations tend to approach location decisions in a
similar way, but the factors that are important to each tend to differ. Although both tend to take
costs and profits into consideration, manufacturing firms are often concerned with location of raw
materials, transportation costs, availability of energy and water, and similar factors. Non-
manufacturing firms often are more concerned with convenience, access to markets, traffic flow,
and the like.
5. Foreign locations may offer lower taxes, access to markets, availability of raw materials, lower
transportation costs (due to nearness to market), and lower labor costs than a comparable
domestic location. Potential drawbacks often relate to the political and economic stability of the
host country and attitudes of the populace towards a particular nation, industry, or firm.
6. Location rating, or factor rating, is a qualitative technique used to develop an overall composite
index for an alternative, which can be used to compare location alternatives. It involves
identifying relevant factors, assigning relative weights to the factors, and rating each alternative
with respect to the factors.
7. The first step is to decide on the criteria to use to evaluate location alternatives (e.g., cost, profits,
community service, etc.). The second step is to identify any important factors that will dominate
the decision. The third step is to develop location alternatives (country, general region, small
number of community alternatives, and site alternatives among the community alternatives). The
fourth step is to evaluate the alternatives and make a selection.
8. Locational breakeven analysis generally assumes the following:
a. Fixed costs are constant for the range of probable output.
b. Variable costs are linear for the range of probable output.
c. The level of output that will be required can be estimated within a narrow range.
d. A single product is involved.
9. Recent trends include the location of foreign manufacturing plants in the United States, having
smaller factories located close to markets, choosing nearby suppliers, low-cost labor is becoming
less of a factor in many industries, and advances in information technology make it less important
to have design, engineering, etc. close to the factory.
Taking Stock
1. Due to economies of scale, the centrally located large facility will be more efficient. The
scheduling and coordination between the large facility and suppliers or customers will be
8-2
Education.
simplified. However, due to distance, transportation/distribution costs to or from the large facility
will be much higher than those costs would be when using several smaller dispersed facilities
instead. Having several smaller dispersed facilities will not only reduce the transportation cost but
also increase the flexibility of the firm in terms of being able to reduce distribution lead time, thus
resulting in faster deliveries or receipts of goods or merchandise.
2. Unlike the process design decision, the facility location decision is a macro decision and thus
requires the involvement of top-level management. The larger the facility, the higher the level of
involvement of the company personnel will be. In terms of various functions or departments
within the company, manufacturing (or operations), logistics and distribution, marketing, and
strategic planning must be involved. Depending on the type of facility considered, other groups
may also need to be included in making this important decision.
3. Due to the advancement of data mining and data warehousing, and the related improvements in
computers’ ability to store and exchange data, we can generate much more useful information to
make the facility location decision.
Critical Thinking Exercises

1. The company does have some social responsibility. Because the company employs such a large
percentage of the city’s workforce, its leaving is certain to have a major impact on town
businesses. It is likely that unless new sources of employment emerge, some residents may be
forced to move away, and many businesses may fail, or barely get by.
Thus, the company must weigh the projected benefits of the move against the actual and social
costs of the move. It also must factor in the primary reasons for the move. These might include
high taxes, adverse weather conditions, a shift in its markets, poor public relations, labor strife, an
aging facility that has to be replaced, an insufficient supply of essential labor skills, and a need to
be closer to a major customer.
2. Trade-offs involved would include:
a. The nature of current, and more importantly, the forecasted future demand.
b. Current demographics and the future expected changes in demographics for this area.
c. The nature and type of competition for this area. We will need to predict what our
competitors will be doing in the short-term as well as in the long-term.
d. We need to divide the area into several sub-areas and consider the advantages and
disadvantages of opening a store in each of the sub-areas.
e. What is the projected impact of the new location(s) on the sales of the existing locations?
If the demand is too low and we decide to open more than one site, we will have to experience
the cost of closing at least one of the existing locations and perhaps absorb the loss of sales in
our existing store. On the other hand, if the demand is higher than we expected, and we opened
up a store only on one site, we will have to consider the opportunity cost of lost sales and profit.
8-3
Education.
3.
Options Pros Cons

Avoid such locations. Avoid the problem completely. Miss out on potential business.
Locate there and deal with it. Potential business. Need to make sure workers
know and abide by the policy.
Risk cheating and possible
consequences.
When in Rome … (assuming Potential business. Probably a fine line between
“bribes” are more like “tips” tipping and bribing, very risky.
to service people).
4. Student answers will vary. Some possible answers follow:

a. If a company located a manufacturing facility that creates heavy pollution adjacent to an
elementary school or a retirement home, this action would violate the Common Good
Principle.
b. If the CEO of a corporation accepted a bribe to locate a new facility in a city, this action
would violate the Virtue Principle.
c. If an executive asked a subordinate to alter some numbers in a factor-scoring model so that
the executive’s location choice came out on top, this action would violate the Rights Principle
and the Virtue Principle.
Solutions
1. Given: We have the following information shown below for two plant location alternatives:
Omaha Kansas City

R $185 $185
v $36 $47
Annual FC $1,200,000 $1,400,000
Expected annual 8,000 12,000
demand (units) (Q)
Determine the expected profits per year for each alternative:
Profit = Q(R – v) – FC
Omaha: 8,000($185 – $36) – $1,200,000 = -$8,000
Kansas City: 12,000($185 – $47) – $1,400,000 = $256,000
Conclusion: Kansas City would produce the greater profit.
8-4
Education.
2. Given: We have the following information shown below for three potential locations for a new
outlet:
A B C
R $2.65 $2.65 $2.65
v $1.76 $1.76 $1.76
Monthly FC $5,000 $5,500 $5,800
a. Determine the monthly volume necessary at each location to realize a monthly profit of
$10,000 (round to 1 decimal).
𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶
𝑄=
𝑅−𝑣
Location A Volume:
𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶 10,000 + 5,000

𝑄= = = 16,853.9 𝑢𝑛𝑖𝑡𝑠
𝑅−𝑣 2.65−1.76
Location B Volume:

𝑄= = = 17,415.7 𝑢𝑛𝑖𝑡𝑠
𝑅−𝑣 2.65−1.76
Location C Volume:

𝑄= = = 17,752.8 𝑢𝑛𝑖𝑡𝑠
𝑅−𝑣 2.65−1.76
b. Determine the expected profits at each facility given the expected monthly volumes:
A = 21,000 per month, B = 22,000 per month, & C = 23,000 per month.
Profit = Q(R – v) – FC
Location A: 21,000($2.65 – $1.76) – $5,000 = $13,690 per month

Location B: 22,000($2.65 – $1.76) – $5,500 = $14,080 per month
Location C: 23,000($2.65 – $1.76) – $5,800 = $14,670 per month
Conclusion: Location C would yield the greatest profits.
8-5
Education.
3. Given: There are two alternatives for which costs and revenue are listed below:
A B
R $17,000 $17,000
v $14,000 $13,000
Annual FC $800,000 $920,000
a. Find the volume at which the two locations have the same total cost (TC).
TC = FC + VC
TC = FC + (Q x v)
TC (Location A) = $800,000 + $14,000Q

TC (Location B) = $920,000 + $13,000Q
Set the two cost equations equal and solve for Q:
$800,000 + $14,000Q = $920,000 + $13,000Q

$14,000Q – $13,000Q = $920,000 – $800,000
$1,000Q = $120,000
Q = $120,000 / $1,000
Q = 120 units
b. Range over which A and B would be superior:
Location A has the lowest fixed costs; therefore, it is preferred at lower volumes.
Conclusion:
Location A Preferred: 0 < 120 units
Location B Preferred: > 120 units
4. Given: There are three alternatives for which costs are given below:
A (new) B (sub) C (expand)

v $500 $2,500 $1,000
Annual FC $250,000 --- $50,000
a. Step 1: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
A: TC = $250,000 + $500Q
B: TC = $2,500Q
C: TC = $50,000 + $1,000Q
8-6
Education.
Step 2: Graph the alternatives.
500
400 A (new location)
TC
($000)
300
[250] C (expansion)
200 B (sub-
contract)
100
[50]
0 33.3 100 200 300 400

B C A
No. of Boats/yr.
Step 3: Determine over what range each alternative is preferred.
Looking at the graph, we can tell that Alternative B is preferred over the lowest range,
Alternative C is preferred over the middle range, and Alternative A is preferred over the
highest range.
First, we find the indifference (break-even) point between Alternatives B & C by setting their
total cost equations equal to each other and solving for Q.
B: TC = $2,500Q
C: TC = $50,000 + $1,000Q
$2,500Q = $50,000 + $1,000Q

$2,500Q – $1,000Q = $50,000
$1,500Q = $50,000
Q = $50,000 / $1,500
Q = 33.33 units
Second, we find the indifference (break-even) point between Alternatives C & A by setting
their total cost equations equal to each other and solving for Q.
C: TC = $50,000 + $1,000Q
A: TC = $250,000 + $500Q
$50,000 + $1,000Q = $250,000 + $500Q

$1,000Q – $500Q = $250,000 – $50,000
$500Q = $200,000
Q = $200,000 / $500
Q = 400 units
8-7
Education.
Conclusion:
Alternative B preferred: < 33.33 units
Alternative C preferred: > 33.33 units to < 400 units
Alternative A preferred: > 400 units
b. Expected volume of 150 boats:
Based on the graph, Alternative C would yield the lowest total cost (TC) at a volume of 150
boats.
c. Other factors that might be considered when deciding between the expansion and
subcontracting alternatives include subcontracting costs will be known with greater certainty,
subcontracting provides a secondary (backup) source of supply, and expansion offers more
control over operations.
5. Rework Problem 4b using this additional information: Alternative A (New Location) will have an
additional $4,000 in fixed costs per year. Alternative B (Subcontracting) will have $25,000 in
fixed costs per year. Alternative C (Expansion) will have an additional $70,000 in fixed costs per
year.
Step 1: Change the costs in the table.
A (new) B (sub) C (expand)

v $500 $2,500 $1,000
Annual FC $254,000 $25,000 $120,000
Step 2: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
A: TC = $254,000 + $500Q
B: TC = $25,000 + $2,500Q
C: TC = $120,000 + $1,000Q
Step 3: Find TC for 150 units.
A: TC = $254,000 + $500(150) = $329,000

B: TC = $25,000 + $2,500(150) = $400,000
C: TC = $120,000 + $1,000(150) = $270,000
Conclusion: Alternative C (Expand) would yield the lowest total cost for an expected volume of
150 boats.
8-8
Education.
6. Given: Expected annual volume (Q) = 10,000 units. There are three lease alternatives for which
costs are given below:
Memphis Biloxi Birmingham

Lease building &
equipment $40,000 $60,000 $100,000
Transportation $50,000 $60,000 $25,000
v $8 $4 $5
Step 1: Determine fixed cost (FC) for each alternative & add FC to table.
FC = Lease cost + transportation cost.
Memphis Biloxi Birmingham

Lease building &
equipment $40,000 $60,000 $100,000
Transportation $50,000 $60,000 $25,000
Annual FC $90,000 $120,000 $125,000
v $8 $4 $5
Step 2: Determine the total cost equation for each alternative.
TC = FC + VC
TC = FC + (Q x v)
Memphis: $90,000 + $8Q

Biloxi: $120,000 + $4Q
Birmingham: $125,000 + $5Q
Step 3: Find TC for 10,000 units.
Memphis: $90,000 + $8(10,000) = $170,000

Biloxi: $120,000 + $4(10,000) = $160,000
Birmingham: $125,000 + $5(10,000) = $175,000
Conclusion: The Biloxi alternative yields the lowest total cost for an expected annual volume of
10,000 units.
8-9
Education.
7. Given: There are two alternative shop locations for which costs are shown below:
City Outside
R $90 $90
v $30 $40
Monthly FC $7,000 $4,700
a. (1) Monthly profit for Q = 200 cars:
Step 1: Determine total profit equation for each alternative.
Total profit = Q(R – v) – FC
City: Q($90 – $30) – $7,000

Outside: Q($90 – $40) – $4,700
Step 2: Determine total profit for each alternative at the expected monthly volume.
City: 200($90 – $30) – $7,000 = $5,000

Outside: 200($90 – $40) – $4,700 = $5,300
Conclusion: Outside location yields the greatest profit if monthly demand is 200 cars.
(2) Monthly profit for Q = 300 cars:
City: 300($90 – $30) – $7,000 = $11,000

Outside: 300($90 – $40) – $4,700 = $10,300
Conclusion: City location yields the greatest profit if monthly demand is 300 cars.
b. Determine the indifference (break-even point) between the two locations.
Set their total profit equations equal to each other and solve for Q:
Q($90 – $30) – $7,000 = Q($90 – $40) – $4,700

$60Q – $7,000 = $50Q – $4,700
$60Q – $50Q = -$4,700 – (-$7,000)
$10Q = $2,300
Q = $2,300 / $10
Q = 230 cars
8-10
Education.
8. Given: We are provided the location factors below for four different types of organizations.
Factor Local bank Steel mill Food warehouse Public school

Convenience for
customers
Attractiveness of
building
Nearness to raw
materials
Large amounts
of power
Pollution
controls
Labor cost and
availability
Transportation
costs
Construction
costs
Student answers will vary regarding how they rate the importance of each factor in terms of
making location decisions using L = low importance, M = moderate importance, and H = high
importance. One possible set of answers is given below.
Factor Local bank Steel mill Food warehouse Public school

Convenience for
customers H L M–H M–H
Attractiveness of
building H L M M–H
Nearness to raw
materials L H L M
Large amounts
of power L H L L
Pollution
controls L H L L
Labor cost and
availability L M L L
Transportation
costs L M–H M–H M
Construction
costs M H M M–H
8-11
Education.
9. Given: We are given factors, weights, and factor rating scores for three locations. Scores range
from 1 – 100 (best).
Location Score
Factor Wt. A B C
Convenience .15 80 70 60
Parking .20 72 76 92
Display area .18 88 90 90
Shopper traffic .27 94 86 80
Operating costs .10 98 90 82
Neighborhood .10 96 85 75
1.00
Multiply the factor weight by the score for each factor and sum the results for each location
alternative.
Weight x Score
Factor Wt. A B C
Convenience .15 .15(80) = 12.00 .15(70) = 10.50 .15(60) = 9.00
Parking .20 .20(72) = 14.40 .20(76) = 15.20 .20(92) = 18.40
Display area .18 .18(88) = 15.84 .18(90) = 16.20 .18(90) = 16.20
Shopper traffic .27 .27(94) = 25.38 .27(86) = 23.22 .27(80) = 21.60
Operating costs .10 .10(98) = 9.80 .10(90) = 9.00 .10(82) = 8.20
Neighborhood .10 .10(96) = 9.60 .10(85) = 8.50 .10(75) = 7.50
1.00 87.02 82.62 80.90
Conclusion: Based on composite score, Location A seems to be the best.
8-12
Education.
10. Given: We are given factors, weights, and factor rating scores for three locations. Scores range
from 1 – 100 (best).
Location Score
Factor Wt. East #1 East #2 West
Initial Cost 8 100 150 140
Traffic 10 40 40 30
Maintenance 6 20 25 18
Dock space 6 25 10 12
Neighborhood 4 12 8 15
Multiply the factor weight by the score for each factor and sum the results for each location
alternative.
Weight x Score
Factor Wt. East #1 East #2 West
Initial Cost 8 8(100) = 800 8(150) = 1200 8(140) = 1120
Traffic 10 10(40) = 400 10(40) = 400 10(30) = 300
Maintenance 6 6(20) = 120 6(25) = 150 6(18) = 108
Dock space 6 6(25) = 150 6(10) = 60 6(12) = 72
Neighborhood 4 4(12) = 48 4(8) = 32 4(15) = 60
1518 1842 1660
Conclusion: Based on composite score, Location East #2 seems to be the best.
8-13
Education.
11. Given: We are given factors and factor rating scores for three locations. Scores range from 1 – 10
(best).
Location Score
Factor A B C
Business services 9 5 5
Community services 7 6 7
Real estate cost 3 8 7
Construction costs 5 6 5
Cost of living 4 7 8
Taxes 5 5 4
Transportation 6 7 8
a. Assume that the manager weights each factor equally.
Because there are seven factors, each factor will have a weight of 1/7. Therefore, we can
sum the scores and divide by 7 to determine the weighted score for each alternative.
Factor A B C
Business services 9 5 5
Community services 7 6 7
Real estate cost 3 8 7
Construction costs 5 6 5
Cost of living 4 7 8
Taxes 5 5 4
Transportation 6 7 8
Total 39 44 44
Total / 7 5.57 6.29 6.29
Conclusion: Location B or C is best, followed by Location A.
8-14
Education.
b. Two of the factors (business services and construction costs) are given weights that are
double the weights of the other factors.
We will give these two factors weights of 2/9 and the other five factors weights of 1/9.
Then, we will multiply each factor’s rating by that factor’s weight.
Factor Location Score Weight Weight x Score

Business Services 9 5 5 2/9 18/9 10/9 10/9
Community Services 7 6 7 1/9 7/9 6/9 7/9
Real Estate Cost 3 8 7 1/9 3/9 8/9 7/9
Construction Costs 5 6 5 2/9 10/9 12/9 10/9
Cost of Living 4 7 8 1/9 4/9 7/9 8/9
Taxes 5 5 4 1/9 5/9 5/9 4/9
Transportation 6 7 8 1/9 6/9 7/9 8/9
1.0 53/9 55/9 54/9
Conclusion: Location B is best, followed by Location C, and then Location A.
12. Given: A toy manufacturer produces toys in five locations and will ship raw materials from a
new, centralized warehouse. The monthly quantities to be shipped to each location are identical.
The coordinates for all five locations are shown below.
Location X Y
A 3 7
B 8 2
C 4 6
D 4 1
E 6 4
We know that the quantities to be shipped to each location are identical so we can eliminate
quantities from consideration. The correct formulas for the center of gravity are shown below:
∑ 𝑥𝑖
𝑥̅ =
𝑛
∑ 𝑦𝑖
𝑦̅ =
𝑛
8-15
Education.
Sum the values in each coordinate’s column.
Location X Y
A 3 7
B 8 2
C 4 6
D 4 1
E 6 4
Sum 25 20
n = 5 locations.
∑ 𝑥𝑖 25
𝑥̅ = 𝑛
= 5
= 5.0 (round to 1 decimal)
∑ 𝑦𝑖 20
𝑦̅ = 𝑛
= 5
Conclusion: The new warehouse should be located at 5.0, 4.0.
13. Given: A clothing manufacturer produces clothes at four locations. The manufacturer must
determine the location of a central shipping point. The coordinates and weekly shipping quantities
to the four locations are shown below.
Weekly
Location X Y Quantity (Q)
A 5 7 15
B 6 9 20
C 3 9 25
D 9 4 30
The correct formulas for the center of gravity are shown below:
∑ 𝑥𝑖 𝑄𝑖
𝑥̅ =
∑ 𝑄𝑖
∑ 𝑦𝑖 𝑄𝑖
𝑦̅ =
∑ 𝑄𝑖
Sum the values in the quantity column.
Weekly
Location X Y Quantity (Q)
A 5 7 15
B 6 9 20
C 3 9 25
D 9 4 30
Sum 90
8-16
Education.
∑ 𝑥 𝑖 𝑄𝑖 5(15)+6(20)+3(25)+9(30)
𝑥̅ = ∑ 𝑄𝑖
= 90
∑ 𝑦𝑖 𝑄𝑖 7(15)+9(20)+9(25)+4(30)
𝑦̅ = ∑ 𝑄𝑖
= = 7.0 (round to 1 decimal)
90
Conclusion: The central shipping point should be located at 6.0, 7.0.
14. Given: A company handling hazardous waste wants to minimize shipping cost for shipments to a
disposal center from five stations that it operates. The coordinates for each of the five stations and
the volumes shipped to the new disposal center are shown below.
Volume in Tons
Location X Y per Day (Q)
1 10 5 26
2 4 1 9
3 4 7 25
4 2 6 30
5 8 7 40
∑ 𝑥𝑖 𝑄𝑖
𝑥̅ =
∑ 𝑄𝑖
∑ 𝑦𝑖 𝑄𝑖
𝑦̅ =
∑ 𝑄𝑖
Sum the values in the quantity column.
Volume
Tons per
Location X Y Day (Q)
1 10 5 26
2 4 1 9
3 4 7 25
4 2 6 30
5 8 7 40
Sum 130
∑ 𝑥 𝑖 𝑄𝑖 10(26)+4(9)+4(25)+2(30)+8(40)
𝑥̅ = ∑ 𝑄𝑖
= 130
∑ 𝑦𝑖 𝑄𝑖 5(26)+1(9)+7(25)+6(30)+7(40)
𝑦̅ = ∑ 𝑄𝑖
130
Conclusion: The disposal center should be located at 6.0, 6.0.
8-17
Education.
15. Given: A company is considering two locations for a distribution center: L1 & L2. The five
shipment destinations and the monthly shipments (Q) to all five destinations are shown below.
Destination Q
D1 900
D2 300
D3 700
D4 600
D5 1200
Step 1: Use the map to determine the coordinates of each destination (use a ruler if necessary).
Add those coordinates to the table. Then, sum the values in the quantity column.
Destination X Y Q
D1 1 2 900
D2 2 4 300
D3 3 1 700
D4 4 2 600
D5 5 3 1200
Sum 3700
Step 2: Determine the center of gravity for the optimal location for the distribution center.
∑ 𝑥 𝑖 𝑄𝑖 1(900)+2(300)+3(700)+4(600)+5(1200)
𝑥̅ = ∑ 𝑄𝑖
3700
∑ 𝑦𝑖 𝑄𝑖 2(900)+4(300)+1(700)+2(600)+3(1200)
𝑦̅ = ∑ 𝑄𝑖
= 3700
Step 3: Use the map to determine the coordinates for L1 & L2. Use a ruler if necessary.
L1 coordinates ≈ 2.6, 2.4

L2 coordinates ≈ 3.5, 2.5
Step 4: Determine the distance between each proposed location and the center of gravity.
Distance between two points = |Difference in X coordinates| + |Difference in Y coordinates|
Distance between L1 & Center of Gravity |2.6 – 3.2| + |2.4 – 2.3| = 0.6 + 0.1 = 0.7
Distance between L2 & Center of Gravity |3.5 – 3.2| + |2.5 – 2.3| = 0.3 + 0.2 = 0.5
Conclusion: L2 is closer to the center of gravity and is the better site.
8-18
Education.
Case: Hello Walmart?
[This is a good case for in-class discussion. Three groups can be formed: one to take the position of
residents, one to take the position of small businesses, and one to take the position of Walmart.]
1. Owners of small businesses:

Pro: Restaurants and other businesses that do not compete directly with Walmart generally would
welcome the additional traffic that Walmart would attract.
Con: Businesses that compete directly would not fare well unless they provided a product or
service value that would offset Walmart’s lower price.
2. Residents:
Pro: Another shopping option, lower prices, and other, non-competing businesses that would be
attracted by the increased traffic that Walmart would generate.
Con: Increased traffic and noise, construction inconveniences, loss of small-town atmosphere,
and loss of local businesses and jobs.
Walmart responses: The company would be a “good neighbor,” supporting the community
and providing jobs for low-skilled and handicapped workers. Construction would create
construction jobs and generate taxes and revenues for the community. Shoppers would benefit
from Walmart’s low prices. In addition, there would be an increase in the tax base.
Enrichment Module
A. Distance Measurement
B. Center of Gravity Method with Predetermined Sites
C. Factor Scoring Model
D. Emergency Facility Location
A. Distance Measurement
The companies measure distance when making two important decisions:
1. Facility Layout Decision:
Distances are estimated/measured in determining the best layout of equipment or departments
within a manufacturing facility such as a plant, a distribution facility such as a warehouse, or
a service facility such as a department store. Distance is an important input in determining the
best possible layout that minimizes the total distance traveled between departments or
workstations.
2. Facility Location Decision:
Distance measurement also is a very important input measure in determining the best location
for a new service or a manufacturing facility, relocation of an existing facility, or elimination
of an existing facility.
In most instances, distance measurements are used to estimate the distances between existing
warehouses or plants and the newly proposed potential location sites. The estimated distance
measures then are used to estimate the transportation costs. Transportation cost is considered
a critical factor in the facility location decision.
8-19
Education.
Distance Measurement Methods:

There are four methods of measuring distance:
1. Empirical Method
2. Rectilinear Method
3. Euclidean Method
4. Weighted Average Method
1. Empirical Method:
The empirical method is the most accurate distance measure. Using the empirical method,
distance can be measured in one of two ways. The first type of empirical measurement is the
actual recorded travel distance, where a driver records the distance based on a vehicle
odometer reading. The second type of empirical measurement of distance is estimation from a
map. When there are no actual travel data available, then the map estimation can be very
useful. However, the actual travel data obviously provides a more accurate measure of
distance than the map estimation.
The main advantage of using either empirical method is that they generally provide the most
accurate distance measures. On the other hand, the disadvantage is that it can be very time
consuming to gather the data and use it as a part of a computerized layout or a location
technique, especially if there are many existing and/or proposed locations.
2. Rectilinear Method
This mathematical method is very easy to compute and lends itself to easy implementation of
computerized layout or location techniques. Rectilinear method requires the use of a two
dimensional space with a horizontal axis, X, and a vertical axis, Y. Rectilinear distance often
is called “Manhattan” distance because it requires going around the block when no straight-
line route is available.
If A and B are the locations in question, the Rectilinear distance between A and B is given by
the following formula:
Dr = X A − X B + YA − YB
Where:
Dr = Rectilinear distance measure between location A and location B;
XA = X coordinate of location A;
XB = X coordinate of location B;
YA = Y coordinate of location A;
YB = Y coordinate of location B.
8-20
Education.
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of Le nouvel amour
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: Le nouvel amour
Author: Eugène Marsan
Release date: July 29, 2022 [eBook #68637]
Language: French
Original publication: France: Chez Madame Lesage, 1925
Credits: René Galluvot (This file was produced from images

generously made available by the Bibliothèque nationale de
France (BnF/Gallica))
*** START OF THE PROJECT GUTENBERG EBOOK LE NOUVEL

AMOUR ***
LE SAGE ET SES AMIS
LE NOUVEL AMOUR
EUGÈNE MARSAN
A
PARIS
CHEZ MADAME LESAGE
DU MÊME AUTEUR :
PASSANTES. — Aux Éditions du Divan.

CHRONIQUE DE LA PAIX. — A la Nouvelle Revue française.
LES CANNES DE M. PAUL BOURGET et le BON CHOIX DE
PHILINTE. — Au Divan.
LES FEMMES DE CASANOVA. — Au Pigeonnier.
STENDHAL CÉLÉBRÉ A CIVITAVECCHIA. — Chez Édouard
Champion, hors commerce.
Le premier des trois portraits de femmes qui sont ici rassemblés
a paru dans un vieux numéro du Divan, celui du mois d’octobre
1912.
Il n’était pas inutile de rappeler son ancienneté, puisque l’on a
imité depuis le ton et la coupe de ces compositions.
Le lecteur devra se souvenir que l’homme ainsi peint — dans les
monologues de l’amour — est un personnage fictif, un héros de
roman, et ne point détester l’auteur, qui n’en peut mais.
E. M.
Le Nouvel Amour
Vous êtes vraiment majestueuse, comme il faut, bien vêtue.

Aurez-vous jamais du chic ?
Parlé. — Votre chapeau, tendresse, a sa coiffe trop étroite, et
votre jupe, n’est-elle pas trop longue ?
Allez, boudeuse ! Pourquoi cette moue qu’il est sûr que vous
faites ? Moquez-vous donc de moi : vous êtes assez belle !
Pour enlever ses bottines, elle aime décidément à s’asseoir par
terre. Je ne sais pas si elle a raison, elle est trop grande…
Seulement, elle est toujours charmante parce qu’elle ne fait rien
exprès.
Un instant, j’ai cru que votre bas retomberait, et il me semble

(prenez-y garde) que j’aurais détourné les yeux. Vous devriez porter
aussi, malgré tout votre système de jarretelles, de bonnes jarretières
rondes, froncées à la vieille. Car vous ôtez votre corset avant vos
bas.
Ce que je dis, ce que je pense, et ce que vous comprenez, ne

sont pas trois mêmes choses. Si chacun de nous lisait tout à fait
dans le cœur des autres, nous perdrions tous la tête.
Parlé. — Ne me dites rien de votre amie Jacquine. Quand une
Flamande a cet air-là, elle l’a bien.
Pourquoi donc, avec cette bouche, avec ces yeux que vous
aviez, parlez-vous à présent du ciel étoilé ? Quel amour véritable !
J’ai cru que vous alliez crier : « Oito oh ! »
Elle entrouvrait les lèvres avec l’avidité des carpes de
Fontainebleau, lorsqu’elles se précipitent sur le pain qui sombre. Je
figurais à ses yeux de métaphysicienne l’Amour en soi ; mais pour
les fibrilles de son être (caro, carnis), j’étais l’ange ou l’animal que lui
désigne mon prénom.
Elle a d’ailleurs la bouche un peu grande, mais qui m’a plu et me
plaira.
Quel bruit ! Elle va casser toute cette porcelaine.
Vous avez les hanches les plus fortes que j’aie vues à une
femme svelte, l’épaule grasse, la nuque un peu bombée, autant de
délices, et de beaux yeux gris ou bleus.
Mais je crois que je recommence à vous préférer cette Romaine
— un souvenir — tournée pour paraître dans un Giorgione, et qui
était donc cuivrée ou dorée, plutôt que brune.
Elle et moi, nous nous nourrissions de jambon de Parme, de
brousse fraîche et de muscats, dans une soupente, au dernier étage
d’un palais. Nous nous régalions d’une eau froide, dont la seule
buée sur le cristal désaltérait. Tous ces plaisirs ensoleillés me
suivent. C’est où va mon regard, vous savez, alors qu’il vous
inquiète.
Ne croyez pas cependant que je méprise nos plaisirs
septentrionaux : les miracles de ce feu dans la grotte rectiligne, ni
toute la neige qui est sur vous, ni le reflet de la flamme sur cette
neige, ô Galsvinte !
Que j’aime à vous voir debout ! Ne croyez pas, belle fille, que
votre vrai nom vous aille mieux que celui que je vous ai donné, la
première fois, pour narguer un peu tout ce nord qui régnait tout à
coup dans mes pensées surprises, dans mes pensées charmées.
Lorsque je vous taquine, ne vous égarez pas, ne vous agitez
pas. Tout à l’heure, votre flanc droit a soulevé le rideau. Les
passants vous auraient vue, beaucoup plus belle que vous ne
naquîtes, si je vous avais rappelée brusquement.
Il est vrai que je vous aurai appris bien des choses. Notamment
qu’il est vilain de geindre, et plus décent de se moquer, lorsqu’on est
triste. Cependant, je vous dois réciproquement beaucoup. Comme il
est instructif d’aimer !
Oh ! ne me rompez pas la tête, avec votre Lilienmilch ! C’est une

affreuse chimie. Je préfère mille fois mon savon de Marseille, avec
trois gouttes d’essence. Avant de rire, essayez. Vous ne savez pas
ce que c’est, lorsqu’il est très bon, lisse et blanc, doux comme
l’amande nouvelle.
Lilienmilch, lait de lys. Ce mot finira par me capter. Je vous en
ferai un autre nom, pour vous nommer quand nous sommes tous les
deux seuls, tout seuls au monde comme à présent.
Ce village de la Grèce, dont on m’a parlé, qui s’appelle Méligala,
c’est à peu près la même idée. Mais le mot est plus noble… L’autre,
pour un savon, que de poésie ! Vous avouerez que l’allemande est
une langue nigaude.
Oui, voyons. Oui ! Je le sais très bien, que vous n’êtes pas
Allemande, mais d’une espèce de contrée exiguë bien que
souveraine, dont les manuels pour le baccalauréat méconnaissent
l’histoire.
Je ne suis point du tout fâché. Jamais vous ne fûtes si

tendrement chérie. Je vous dis seulement : « Ne soyez pas
agaçante ! » Dans mes yeux, vous pouvez connaître le reste, et
combien je vous aime. Je vous demande seulement de ne pas
repartir dans vos nuages. Votre ingénuité me plaît surtout lorsqu’elle
est un peu terre à terre.
Mains froides, cœur chaud, ou bien c’est la joue qui brûle.
Si tu avais un enfant, et qu’il fût de moi, je te l’enlèverais. Je

l’enlèverais, je partirais, je m’en irais avec notre enfant, je ne sais
où… en Albanie.
Peut-être ne voudrais-tu pas d’un parti si romanesque. Tu
voudras garder l’enfant avec toi, et te réconcilier à temps, et mentir.
Mais il me suffirait de connaître ton mari, il me suffirait de
l’apercevoir, je crois : j’aurais peine à t’aimer… Ainsi, quoique tu ne
l’aimes plus, tu dépends encore de ton ancien serment. Même
refusée, ta personne n’est plus libre. Tu vois que je suis gentil : je
n’imagine pas que tu me sois infidèle, et je t’ai mis des larmes dans
les yeux parce que je te l’ai dit. Attention. Ne nous risquons pas, ou
pas encore, ne nous risquons pas trop loin sur cette voie des
confidences à perte de vue. Elles enchantent d’abord le cœur, puis
le navrent, le laissent vide ou trop nu, mal content, comme dévalisé.
Toi et moi, si nous sommes deux fous, je ne suis peut-être pas le
moindre. Battons-nous à coups de poètes, qui permettent de voiler.
Tu verras que mes livres sont les meilleurs.
Mais ce que tu appelles mon prosaïsme, ce goût du vrai, cette
cruelle et pitoyable curiosité (sans compromission), ce n’est pas toi
qui le tireras au clair.
Dieu n’est pas bon : tu vois bien qu’il pleut à verse.
Ces gens qui marchent dans la rue, dont tu entends le pas, et

que tu ne connais pas. L’un de ces inconnus deviendra peut-être ton
ami sans que tu saches jamais, ni lui, qu’un certain jour, comme tu
étais très émue, il a passé sous ta fenêtre.
Ne crois pas que je devienne imbécile.
Sans moi vous alliez oublier votre fourrure.
Tu avais plus perdu l’esprit que moi, grande sotte !
Vous n’êtes pas dehors, et vous êtes redevenue timide. Je la
connais, votre timidité d’apparat, je sais les grandes déterminations
qu’elle cache ou plutôt qui la rompent soudainement.
Encore un peu de Xérès, pour vous donner l’idée du soleil qu’il

fait en Andalousie. Un peu de Xérès, un dernier baiser, sans défaire
votre rouge… Je voudrais vous aimer toujours.
Si je vous l’avouais à présent, que je vous aime bien, vous me

croiriez. Et il y a un certain amour dont je suis peut-être incapable,
un amour d’entière donaison.
Le désir et l’amitié m’enchantent pourtant. Et que les deux
agréments se joignent, ou que l’amitié naisse du désir comblé, deux
créatures auront mis la main sur un grand bonheur.
« Cette espèce bizarre de créatures qu’on appelle le genre

humain… » Je cite Fontenelle, dans la Pluralité des Mondes.
Je voudrais t’avoir connue il y a longtemps, je voudrais que nous

eussions l’un de l’autre des souvenirs d’enfance, petite fille, les
mêmes souvenirs.
La Méchante
Je ne vous ai jamais demandé, je crois : « A quoi penses-tu ? »

Je vous ai toujours caché un grand nombre de mes pensées, toutes
celles qui pouvaient nourrir la faim de l’âme.
C’est pourquoi nous fumons tant de cigarettes.
J’en suis toujours à me demander comment vous avez fait pour

que je vous surprisse une fois.
Jamais, dans le même moment, je n’ai tant vu de votre personne
que ce premier jour, lorsque vous ne m’étiez rien encore, et que je
vous étais si peu.
Pauvre petite chose ! Vous n’avez guère d’appâts visibles, mais
vous connaissez l’empire de vos imperfections mêmes, celui de
votre ligne mince et de son acuité.
Vous étiez capable d’avoir choisi — comme une héroïne de
Bourget — l’heure du jour, vous aviez mesuré l’élévation de la
lampe, vous aviez préparé jusqu’à la couleur, jusqu’au parfum de la
chambre, et contrefaisiez pourtant la petite fille étonnée.
La grande pièce était sombre. Elle était claire en deux endroits,
claire près de vous, et claire sur la longue fourrure blanche où vous
aviez probablement médité de tomber, devant les flammes
rosissantes.
Aux fenêtres, la nuit était aussi noire que le fer de l’âtre, où les
bûches mourantes donnaient la réplique aux feux lointains de la
campagne.
Il avait plu sur les vitres.
Quel silence, ah ! comédienne !
Comme vous avez bien su prononcer à mi-voix mon nom. De
manière à marquer tout ensemble la surprise, le contentement, et
que vous cédiez sans aimer au sourd instinct irrésistible. A quelle
flatteuse Vénus !
Lorsque vous avez tué votre mari, il était en passe de devenir

ministre d’État, et vous avez rendu un si grand service à ses rivaux
qu’ils vous l’ont peut-être payé. Il a suffi qu’ils fussent adroits.
Vous ne l’avez point assassiné. Il n’est mort que de peine.
On m’a dit que vous étiez allée jusqu’à séduire un jour, séance
tenante, votre déménageur. Je voudrais savoir comment vous vous y
êtes prise, et ce que vous avez pu lui dire, pour commencer.
Comment ne l’avez-vous pas intimidé ? Quel usage du monde il
vous aura fallu !
Je ne suis pas curieux de l’entre-deux. Pas curieux de vos
sensations avec un autre. Et que ce fût celui-là ! En y repensant, je
crois que j’aimerais à apprendre surtout combien vous avez tremblé
de peur, ensuite.
Je vous ferai voir un jour, dans un récit très bien conduit, de quel
visage Mérimée éclata de rire au nez de George Sand.
Je vous ai déjà touché un mot de cette scène, légèrement et par
allusion. Vous me dîtes brusquement que je n’étais pas Mérimée.
Mais, ni vous Sand, chérie, bien que vous soyez, à coup sûr, plus
redoutable.
Je vous ai seulement répliqué que ce n’était pas la question, et
par un raisonnement général sur la logique féminine. Je rompais, je
me repliais, je cachais mes armes. Il me semble que, contre vous,
presque tout est licite. Je n’avais pas encore le courage de me priver
de toi.
Ils auraient pu fonder une société, les amis de ton mari, un
cercle, et la livrée à tes couleurs.
Je meurs d’envie d’en discourir devant toi à bouche ouverte,

mais peut-être suffit-il que je me rappelle tout ce que j’ai su, et que
tu le lises dans mes yeux, sans en être tout à fait certaine.
Et je t’enlace pourtant, voici sur ta bouche la mienne. Sale bête !
Moque-toi donc de moi un instant, sans rire, ou donne-toi cette
illusion, tandis que tes bras me serreront comme malgré toi.
Je commence à le savoir, qu’il y a des défauts pour créer de

toutes pièces un charme. J’en ai adoré une autre, petite aussi et
blonde, qui était brèche-dent. Mais rassurante. La grâce imprévue
de sa bouche s’accordait aux enfances qu’elle faisait. Au lieu que toi,
dans ton apparente débilité, on ne sait quelle terrible folie te mène.
Ni jusqu’où.
J’aurais parié que tu avais la jambe trop maigre et la poitrine

nulle. Mais, après tout, c’est à peine si je le sais encore.
Si tu n’es pas laide, tu n’es pas jolie, assurément, avec ton
étrange petit nez oblique et tout cet embrouillamini de ta face. Un
miracle que le dieu Paris renouvelle tous les matins.
Je ne méconnais pas ce profond coussin de tes cheveux, où tu
joues à faire l’endormie, ni tes yeux violets, quand filtre ce long
regard, ni tant de grâces bien apprises, ô Perfide !
Tu vois, l’on te parlerait en style de tragédie.
Il n’y a pas d’horreur que tu doives prendre la peine de te refuser,
n’ayant que tes paupières à relever pour rattraper l’innocence.
Je te compare à un oiseau — laisse-moi dire — à un oiseau des

Iles. La chair n’y est rien, tout est plume.
Qu’il y ait encore des gens pour se figurer une vie moderne,
disent-ils, toute privée de romanesque. Ils n’ont pas prévu la guerre
de cinq ans, qu’il ne faut pas nommer des deux mondes, pour garder
un nom à celle qui pourra suivre, et ils ne t’ont pas vue.
Assise sur ton divan, sage, réservée, lustrée, polie.
Et tant d’affreux secrets dans ta brillante petite tête. Tant d’affreux
secrets dans ce cœur méchant, à peine voluptueux, mais avide,
tyrannique, mais facile et égoïste à plaisir, et tout gâté, comme un
fruit.
Il te fallait des perles. C’est de quoi est mort l’infortuné.
Votre mine de grande dame, comme elle tombe vite, quand vous
vous mettez à couper un sou en quatre, en certains cas ! Alors, tout
charme s’efface : l’enfantin regard lance des lames de couteaux, et
cette voix que vous tenez si douce, d’habitude, quelle pitié, si vous
saviez, de l’entendre, altérée par l’avarice ! Il m’est arrivé de vous y
surprendre, et si vite que vous ayez recomposé votre visage, vous
n’avez pas su vous empêcher de rougir.
C’est-à-dire que vous redeveniez soudain jolie.
Quels philtres remêlez-vous ? Je me défierai de votre thé.
Vous me rendrez cette justice, que j’ai toujours tout craint de

vous, qu’il n’y a pas de honte que je n’eusse redoutée, si vous
m’aviez mieux tenu. Par bonheur, vous m’avez toujours senti libre,
frémissant, prêt à échapper. L’ambition de m’asservir vous a rendue
prudente. Je vous ai vue quelquefois qui m’observiez entre vos cils.
La mémoire de certains moments, où j’espère n’avoir pas

entièrement révélé tout le plaisir que vous me donniez, me ramenait
toujours.
Tourments du désir que la défiance traverse, et de la volupté,
pour douce qu’elle soit, ou déchirante, qui ne s’élève pas jusqu’au
bonheur.
Je vous aurais nommée mon enfant et ma sœur, si je l’avais pu
sans remords.
Vous laissez le beau linge blanc aux belles femmes. Vous ne

mettez sur vous que des toiles d’araignée, bleues, vertes, roses, si
bizarrement coupées que votre pantalon ne ressemble à rien.
L’on vous verrait trop bien au travers, s’il n’y en avait tant que
vous superposez, sachant que votre forme a moins de pouvoir que
leur légèreté et leur chaleur.
Vous ne découvrez pas beaucoup plus que vos bras et votre
épaule, mais l’on ne sait plus jusqu’où monte la soie de vos deux
bas. La vôtre rivalise. Si vous versez une mortelle douceur dans
toutes les veines, une à une, votre tête n’est pourtant rien. Qu’une
ombre. La gouache d’un éventail.
Vous voulez m’entendre et que je contente votre malice, puisque

c’est encore du jeune Raoul que vous me parlez. Je l’ai rencontré
tout seul, l’autre jour, chez Mme X…, la joue en feu. Il m’a dit qu’elle
l’avait d’abord baisé sur la bouche et qu’il s’était brusquement
détourné pour lui tendre la joue, parce qu’elle a de fausses dents et
qu’il craignait d’en être mordu.
Si vous souriez, ne croyez pas que je sois tombé dans un piège
ni que je te fasse l’honneur d’être jaloux. Je sais que vous savez à
présent tout ce que vous vouliez savoir, tant sur la dame que sur
l’adolescent.
Vous souriez en outre, parce que vous songez que je ne serais
pas plus fort entre vos mains, s’il vous plaisait, que cet innocent.
Quand aurez-vous fini de vous trahir ?
Tout le monde a su que vous aimez à faire souffrir.
Savoir si mon tour viendra.
Ronronnez, ronronnez. Le temps que vous allongiez la patte, je
serai loin.
Vous m’enseignez des plaisirs psychologiques qui me sont
nouveaux.
Quand vous me menacerez bien, je vous imposerai un traité.
Vous ne me livrerez pas à la calomnie, et je tairai que vous avez la
jambe torte.
Ce sont des fluides, dont vous avez la disposition. Il vous suffit

de bouger, sorcière, il vous suffit de ciller.
Il faut bien que je me convainque que vous m’aimez, au moins un
peu, du moins à votre façon, puisqu’en signe de ce désir que vous
n’avouez jamais en clair, votre regard vacille.
A peine si vous souriez, avec un air de faiblesse, dans l’amas de
vos mousses, qui sont roses aujourd’hui. Dans l’amas de vos
mousses, pareille à un sorbet.
Vous êtes tout à fait comme ces glaces aux myrtilles de l’été
dernier, rouge et douce-amère. Je les détestais et ne cessais d’en
reprendre. Vous laissez le même arrière-goût.
Votre main immobile est d’une beauté qui effraye, mince et

veinée.
Pâle et léger bijou, ivoire, corail, est-ce que vous respirez

encore ? Je voudrais voir un souffle traverser votre linge, ô poupée,
petite poupée !

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Answers to Discussion and Review Questions

Critical Thinking Exercises

Options Pros Cons

4. Student answers will vary. Some possible answers follow:

Omaha Kansas City

Determine the expected profits per year for each alternative:

Conclusion: Kansas City would produce the greater profit.

𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶 10,000 + 5,000

𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶 10,000 + 5,500

𝑆𝑝𝑒𝑐𝑖𝑓𝑖𝑒𝑑 𝑝𝑟𝑜𝑓𝑖𝑡+𝐹𝐶 10,000 + 5,800

Location A: 21,000($2.65 – $1.76) – $5,000 = $13,690 per month

Conclusion: Location C would yield the greatest profits.

TC (Location A) = $800,000 + $14,000Q

Set the two cost equations equal and solve for Q:

$800,000 + $14,000Q = $920,000 + $13,000Q

b. Range over which A and B would be superior:

A (new) B (sub) C (expand)

a. Step 1: Determine the total cost equation for each alternative.

Step 2: Graph the alternatives.

400 A (new location)

0 33.3 100 200 300 400

Step 3: Determine over what range each alternative is preferred.

$2,500Q = $50,000 + $1,000Q

$50,000 + $1,000Q = $250,000 + $500Q

b. Expected volume of 150 boats:

Step 1: Change the costs in the table.

A (new) B (sub) C (expand)

Step 2: Determine the total cost equation for each alternative.

Step 3: Find TC for 150 units.

A: TC = $254,000 + $500(150) = $329,000

Memphis Biloxi Birmingham

Memphis Biloxi Birmingham

Step 2: Determine the total cost equation for each alternative.

Memphis: $90,000 + $8Q

Step 3: Find TC for 10,000 units.

Memphis: $90,000 + $8(10,000) = $170,000

a. (1) Monthly profit for Q = 200 cars:

Step 1: Determine total profit equation for each alternative.

Total profit = Q(R – v) – FC

City: Q($90 – $30) – $7,000

City: 200($90 – $30) – $7,000 = $5,000

(2) Monthly profit for Q = 300 cars:

City: 300($90 – $30) – $7,000 = $11,000

b. Determine the indifference (break-even point) between the two locations.

Q($90 – $30) – $7,000 = Q($90 – $40) – $4,700

Factor Local bank Steel mill Food warehouse Public school

Factor Local bank Steel mill Food warehouse Public school

Conclusion: Based on composite score, Location A seems to be the best.

Conclusion: Based on composite score, Location East #2 seems to be the best.

a. Assume that the manager weights each factor equally.

Conclusion: Location B or C is best, followed by Location A.

Factor Location Score Weight Weight x Score

Conclusion: Location B is best, followed by Location C, and then Location A.

Sum the values in each coordinate’s column.