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 8
C H A P T E R

Location Strategies

DISCUSSION QUESTIONS
Proximity to raw materials/customers

Land/construction costs
1. FedEx’s key location concept is the central hub concept, with
Memphis selected for several reasons, including its being in the 10. Franchise operations may add new units per year; Exxon,
middle of the country and having very few hours of bad weather McDonald’s, and Walmart add hundreds of units per year, meaning
closures. almost daily location decisions. For such organizations, the location
decision becomes more structured, more routine. Perhaps by repeat-
2. The major reason for U.S. firms to locate overseas is often
ing this process they discover what makes their strategic locations
lower labor costs, but as this chapter, and Chapter 2 suggest, there
decisions successful.
are a number of considerations.
11. Factors affecting location decisions: nearness to resources,
3. The major reason foreign firms build in the U.S. is to satisfy
suppliers, and customers; labor productivity; foreign exchange;
the demand for foreign goods in the United States while reducing
political risk, unions; employment; zoning; pollution; taxes; and
transportation cost and foreign exchange risk; in addition, U.S.
clustering.
locations allow foreign firms to circumvent quotas and/or tariffs.
12. The center-of-gravity method assumes that cost is directly
4. Clustering is the tendency of firms to locate near competitors.
proportional to both distance and volume shipped. For service
5. Different weights can be given to different factors. Personal facilities, revenue is assumed to be directly proportional to prox-
preferences are included. imity to markets.
6. The qualitative approach usually considers many more fac- 13. Locational break-even analysis has three steps:
tors, but its results are less exact.

Step 1: Determine fixed and variable cost for each
7. Clustering examples in the service sector include fast-food location.
restaurants, shoe and jewelry stores in a shopping mall, and theme
Step 2: Plot the costs for each location, with costs on the
parks. vertical axis of the graph and annual volume on the
8. Factors to consider when choosing a country: horizontal axis.

Exchange rates
Step 3: Select the location that has the lowest total cost

Government stability (political risk) for the expected production volume.

Communications systems within the country and to the 14. The issue of weight or volume gain and weight or volume
home office loss during processing is important, and supports the manufactur-

Wage rates ing side of the saying (weight loss during mining and refining, for

Productivity example, suggests shipping after processing). But JIT may be

Transportation costs more easily accomplished when suppliers are clustered near the

Language customer. And some services (such as Internet sales) can take

Tariffs place at tremendous distances without sacrificing close contact.

Taxes 15. Besides low wage rates, productivity should be considered

Attitude towards foreign investors/incentives also. Employees with poor training, poor education, or poor work

Legal system habits are not a good buy. Moreover, employees who cannot or will

Ethical standards not reach their place of work are not much good to the organization.

Cultural issues
16. Service location techniques: regression models to determine

Supplies availability
importance of various factors, factor rating method, traffic counts,

Market locations
demographic analysis of drawing area, purchasing power analysis of
9. Factors to consider in a region/community decision: area, center-of-gravity method, and geographic information system.

Corporate desires 17. The distributor is more concerned with transportation and

Attractiveness of region storage costs, and the supermarket more concerned with proximity

Labor issue to markets. The distributor will focus more on roads, overall popu-

Utilities lation density (store density), while the supermarket will focus more

Environmental regulations on neighborhood affluence, traffic patterns, etc. The distributor will

Incentives be concerned with speedy and reliable delivery, the supermarket

112 Copyright ©2014 Pearson Education, Inc.

 CHAPTER 8 LOCATION STRATEGIES 113

with easy access. Both will have concerns over attitudes and zoning. END-OF-CHAPTER PROBLEMS
Both will need access to similar labor forces; both will need similar
8.1 Where: 6 laborers each making $3 per day can produce 40 units.
measures of workforce education, etc. Many other comparisons can
10 laborers each making $2.00 per day can produce 45 units.
be drawn.
2 laborers each making $60 per day can make 100 units.
18. This is a service location problem, and should focus on reve-
nues, not costs. Customer traffic, customer income, customer 6 × $3
(a) Myanmar = = $0.45 unit
density, are obvious beginning points. Parking/access, security/ 40
lighting, appearance/image, rent, etc. (see Table 8.6) are other 10 × $2.00
(b) China = = $0.44 unit
important variables. 45
19. An aerotropolis is an airport region that integrates a cluster of 2 × $60
(c) Montana = = $1.20 unit
hotels, offices, distribution, and logistics facilities. 100
China is most economical, assuming that transportation costs
ETHICAL DILEMMA are not included.
Location is a major issue in the U.S. today. Almost every 8.2 Myanmar $0.45 + $1.50 = $1.95
community is seeking new jobs, especially from foreign firms like China $0.44 + $1.00 = $1.44
Mercedes. As Mercedes was definitely coming to the U.S. any- Montana $1.20 + $0.25 = $1.45
way, the bidding wars are nonproductive from a central economy China is most favorable, but Montana is almost tied.
perspective. There are many implications to the local citizenry, 8.3 Thailand: 2,000 baht/200 = 10 baht/unit,
especially because they pay the bills if the financial successes if $1 = 10 baht ⇒$1/unit
predicted are not accurate. Votes are usually not taken as these India: 2,000 rupees/200 = 10 rupees/unit,
decisions are made by the political leaders of the community. if $1 = 8 rupees ⇒ $1.25/unit
Objective economic analysis on the incentives versus benefits Sacramento (U.S.A.): $200/200 = $1/unit
might limit the giveaways. Select either Thai or U.S. company.
As the United Airlines discussion suggests, there are many
downsides to the spread of incentives being offered by almost 8.4 If India had a tariff of 30%, then making the items in India is
every city, state, and country. Orlando and Louisville are likely $0.05 less than importing them from anywhere.
counting their blessings that they lost the bidding war for the 8.5 (a) Baptist Church is best.
United repair base. For every happy ending (such as Vance, Site
Alabama, claims with its Mercedes plant), there is a story like the Maitland Baptist Church Northside Mall
one in this Ethical Dilemma. The Internet should yield a rich crop Factor (weight × score) (weight × score) (weight × score)
of similar situations. Space 18 21 24
Costs 10 20 7.5
ACTIVE MODEL EXERCISE Traffic density 10 16 12
Neighborhood
ACTIVE MODEL 8.1: Center of Gravity income 7.5 10.5 6
Zoning laws 8 2 9
1. What is the total weighted distance from the current old and Totals 53.5 69.5 58.5
inadequate warehouse in Pittsburgh?
318,692 (b) The totals are now Maitland, 52.5; Baptist Church, 70.5; and North-
side Mall, 56.5. Baptist Church’s location is even more preferred.
2. If they relocate their warehouse to the center of gravity, by
8.6 (a) Mobile = 0.4(80) + 0.3(20) + 0.2(40) + 0.1(70) = 53
how much will this reduce the total weighted shipping distance? Jackson = 0.4(60) + 0.3(50) + 0.2(90) + 0.1(30) = 60
By 18,663—from 318,692 to 300,029.
Jackson is better.
3. Observe the graph. If the number of shipments from New (b) A change to 75 (from 60) in Jackson’s incentive package
York doubles, how does this affect the center of gravity? does not change the answer to part (a) because Jackson was
The center of gravity moves north and east. already the better site. The new Jackson score is now 66
4. The center of gravity does not necessarily find the site with overall, while Mobile stays at 53.
the minimum total weighted distance. Use the scrollbars to move 8.7
the trial location and see if you can improve (lower) the distance. Philadelphia New York
64, 97, (with a total weighted distance of 299), 234 (using Factor (weight × score) (weight × score)
Solver). Customer
5. If you have Solver set up in Excel, from Excel’s main menu, convenience 17.5 20
Bank accessibility 8.0 18
use Tools, Solver, Solve in order to see the best answer to the
Computer support 17.0 15
previous question. Rental costs 13.5 8.25
64, 97, (with a total weighted distance of 299), 234. Labor costs 8.0 5.0
Taxes 9.0 5.0
Totals 73.0 71.25

Northeastern should locate in Philadelphia.

Copyright ©2014 Pearson Education, Inc.

114 CHAPTER 8 LOCATION STRATEGIES

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
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 Cost 0.30 80 24.0 85 25.5 95 28.5 85 25.5
Land &
Construction 0.15 60 9.0 80 12.0 90 13.5 70 10.5
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 Cost 0.10 80 8.0 85 8.5 95 9.5 85 8.5
Land &
Construction 0.15 60 9.0 80 12.0 90 13.5 70 10.5
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 still
firmly 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
Copyright ©2014 Pearson Education, Inc.
 CHAPTER 8 LOCATION STRATEGIES 115

8.10 (a) 8.12 (a) Given the factors and weightings presented, the fol-
lowing table suggests that Great Britain be selected:
Location A
Factor Weight Rating Weighted Score Great
Factor Weight Holland Britain Italy Belgium Greece
1 5 100 500
2 3 80 240 1 Stability of 0.2 1.0 1.0 0.6 1.0 0.8
3 4 30 120 government
4 2 10 20 2 Degree to 0.2 0.8 1.0 0.6 0.8 0.6
5 2 90 180 which the
6 3 50 150 population can
converse in
Total weighted score: 1210
English
3 Stability of 0.1 0.5 0.4 0.3 0.4 0.3
Location B
the monetary
Factor Weight Rating Weighted Score system
1 5 80 400 4 Communications 0.1 0.4 0.5 0.3 0.4 0.3
2 3 70 210 infrastructure
3 4 60 240 5 Transportation 0.1 0.5 0.5 0.3 0.5 0.3
4 2 80 160 infrastructure
5 2 60 120 6 Availability of 0.1 0.3 0.4 0.5 0.3 0.5
6 3 60 180 historic/
cultural sites
Total weighted score: 1310
7 Import 0.1 0.4 0.4 0.3 0.4 0.4
restrictions
Location C
8 Availability of 0.1 0.4 0.4 0.3 0.4 0.3
Factor Weight Rating Weighted Score suitable
1 5 80 400 quarters
2 3 100 300 1.00 4.3 4.6 3.2 4.2 3.5
3 4 70 280 (b) If English is not an issue, as illustrated in the following
4 2 60 120 table, Great Britain, Holland, and Belgium should all
5 2 80 160 be considered further:
6 3 90 270
Total weighted score: 1530 Great
Factor Weight Holland Britain Italy Belgium Greece
Based on the total weighted scores, Location C should be recommended. 1 Stability of 0.2 1.0 1.0 0.6 1.0 0.8
Note that raw weights were used in computing these weighted government
scores (we just multiplied “weight” times “rating”). Relative weights 3 Stability of the 0.1 0.5 0.4 0.3 0.4 0.3
could have been used instead by taking each factor weight and dividing monetary
by the sum of the weights (i.e., 19). Then the weight for factor 1 would system
have been 5/19 = 0.26. Location C would still have been selected. 4 Communications 0.1 0.4 0.5 0.3 0.4 0.3
infrastructure
(b) Location B’s “Proximity to Port Facilities” score increases
5 Transportation 0.1 0.5 0.5 0.3 0.5 0.3
from 80 to 90: The total score increases by 10 × (5 weight) = infrastructure
50, to 1,360 points. 6 Availability of 0.1 0.3 0.4 0.5 0.3 0.5
(c) To change its rank to first place, Location B needs to increase to at historic/
least 1,530 points from 1,310. Even if the score is 100, the total only cultural sites
increases to 1,410, so B will stay as the second choice. To end up in 7 Import 0.1 0.4 0.4 0.3 0.4 0.4
third place, if the rating drops below 60, the total weighted score restrictions
drops below 1,210, which is Location A’s total score. 8 Availability of 0.1 0.4 0.4 0.3 0.4 0.3
suitable
8.11 (a) quarters
Factor Weight Taiwan Thailand Singapore 0.8 3.5 3.6 2.6 3.4 2.9
Technology 0.2 .8 1.0 .2 8.13 (a)
Level of education 0.1 .4 .1 .5 Site Total Weighted Score
Political/legal 0.4 .4 1.2 1.2
A 174
Social 0.1 .4 .2 .3
Economic 0.2 .6 .6 .4 B 185
Weighted average 2.6 3.1 2.6 C 187
D 165
Thailand rates highest (3.1).
Site C has the highest total weighted score so should be selected.
(b) Now Thailand’s overall score drops to 2.7, just ahead (but not
(As a practical matter, when scores are as close as those for Sites
by much) of Taiwan and Singapore.
B and C, further analysis is warranted.)
(c) Now Thailand’s score drops to 2.3, leaving the other two
(b) Site D’s total score is now raised from 165 to 175. Although
countries in a tie for first place.
D ranks slightly higher than A, the results do not change.
(c) Site A’s total score increases by 12 points, to 186. This is now close
Copyright ©2014 Pearson
to aEducation,
three-wayInc.
tie between sites A, B and C. Other factors need to
be introduced.
116 CHAPTER 8 LOCATION STRATEGIES

8.14 (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
Cost(Dallas) = Cost(Detroit)
Italy is highest. FC (Dallas) + Q × VC (Dallas) = FC (Detroit) + Q × VC (Detroit)
(b) Spain’s cost would drop, but the result would not $600,000 + $28Q = $800,000 + $22Q
change with a 4, since Spain is already lowest. No score $6Q = $200,000
will change Spain’s last place. Q = $200,000 / $6
8.15 (a) Chicago = 16 + 6 + 7 + 4 = 33
Q = 33,333
Milwaukee = 10 + 13.5 + 6 + 3 = 32.5
Madison = 12 + 12 + 4 + 2.5 = 30.5 (b) Q drops to 23,333, from 33,333.
Detroit = 14 + 6 + 7 + 4.5 = 31.5 since $660,000 + 28Q = $800,000 + 22Q
All four are quite close, with Chicago and Milwaukee so, 6Q = 140,000
almost tied. Chicago has the largest rating, with a 33. or Q = 23,333
(b) With a cutoff of 5, Chicago is unacceptable because it scores 8.18 (a)
only 4 on the second factor. Only Milwaukee has scores of 5 180
or higher on all factors. Detroit and Madison are also elimi- 170
160 Site A
nated, as each has one rating of a 4.
150
8.16 (a) The following figure indicates the volume range for 140
which each site is optimal. 130 Site B
120
110
$ Cost
100
(millions)
90 Site C
80
70
60
50
40
30
20
10
0 V
0 10 20 30 40 50 60 70
1,000’s of Audis = V

10,000,000 + 2,500V = 25, 000, 000 + 1, 000V

Site 1 is optimal for production less than or equal to 1,500V = 15, 000, 000
125 units. V = 10, 000
Site 2 is optimal for production between 125 and For all volumes above 10,000, site C has the lowest cost.
233 units.
(b) Site A is optimal for volumes from 0 to 10,000 Audis.
Site 3 is optimal for production above 233 units. (c) Site B is never optimal because its cost line always exceeds
(b) For 200 units, site 2 is optimal. that of A or C for all volume levels.
8.17 (a) See the figure below: 8.19 (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.
Copyright ©2014 Pearson Education, Inc.
 CHAPTER 8 LOCATION STRATEGIES 117

8.20 (a) X = New middle school to serve 4 elementary schools.

5 × 5 + 6 × 10 + 4 × 15 + 9 × 5 + 7 × 15 + 3 × 10 + 2 × 5 (b) Other considerations:
Cx =
5 + 10 + 15 + 5 + 15 + 10 + 5
Cannot locate on the highway obviously
335
Safety—pedestrian bridge
= = 5.15
Space for school and grounds
65

Traffic
10 × 5 + 8 × 10 + 9 × 15 + 5 × 5 + 9 × 15 + 2 × 10 + 6 × 5
Cy =
Availability of land and its price
5 + 10 + 15 + 5 + 15 + 10 + 5
8.23 (a)
475
= = 7.31 Cx = x coordinate of center of gravity
65
The proposed new hub should be near (5.15, 7.31).
[25(2,000) + 25(5,000) + 55(10,000) + 50(7,000) +
(b) When the shipment loads from City A triple, from 5 to 15, the
new coordinates are (5.13, 7.67). 80(10,000) + 70(20,000) + 90(14,000)]
Cx =
8.21 [2,000 + 5,000 + 10,000 + 7,000 + 10,000 +
3 × 9.2 + 3 × 7.3 + 5 × 7.8 + 3 × 5.0 + 3 × 2.8 + 20,000 + 14,000]
3 × 5.5 + 3 × 5.0 + 3 × 3.8 4,535,000
Cx = Cx = = 66.69
26 68,000
154.8 [45(2,000) + 25(5,000) + 45(10,000) + 20(7,000) +
= = 5.95
26 50(10, 000) + 20(20,000) + 25(14,000)]
Cy =
3 × 3.5 + 3 × 2.5 + 5 × 1.4 + 3 × 8.4 + 3 × 6.5 + 3 × 2.4 + [2,000 + 5,000 + 10,000 + 7,000 + 10,000 +
3 × 3.6 + 3 × 8.5 20,000 + 14,000]
Cy =
26 2,055,000
Cy = = 30.22
113.2 68,000
= = 4.35
26 The center of gravity is (66.69, 30.22).
The distance-minimizing location is at (5.95, 4.35). This minimizes (b) When Census tracks 103 and 105 increase by 20% each, from
distance traveled, but is “straight line,” which does not reflect reali- 10,000 to 12,000 population, the new coordinates become
ties of highway routes. It does not consider rivers, bridges, and other (66.74, 31.18). Coordinate denominators increase (by 2,000
geographical impediments. Consider placing the office as near the + 2,000) to 72,000. The x-coordinate numerator increases (by
center of gravity as possible and still be on or near a major highway. 55(2,000) + 80(2,000)) to 4,805,000. The y-coordinate nu-
Students who overlay this onto a map of Louisiana should recognize merator increases (by 45(2,000) + 50(2,000)) to 2,245,000.
that Baton Rouge would be an ideal location. 8.24 (a) Calculate the overall site scores for each site:
8.22
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:

Site Overall Score

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
A (North Park) (4, 11) 500
B (Jefferson) (5, 2) 300 Now find all values (a) 344 + 3w7 ≥ 298 + 5w7
C (Lincoln) (8, 2) 300 of w7 such that (b) 344 + 3w7 ≥ 330 + 4w7
D (Washington) (11, 6) 200 (a), (b), & (c) all hold: (c) 344 + 3w7 ≥ 300 + 3w7
1,300
Results:
(a) (a) states w7 ≤ 23 (b) states w7 ≤ 14
(4 × 500) + (5 × 300) + (8 × 300) + (11 × 200) 8,100 (c) states 344 ≥ 300 (which holds for all values of w7).
Cx = = = 6.23
1,300 1,300 For all positive values of w7 such that w7 ≤ 14.
(11 × 500) + (2 × 300) + (2 × 300) + (6 × 200) 7,900
Cy = = = 6.08
1,300 1,300

Copyright ©2014 Pearson Education, Inc.

118 CHAPTER 8 LOCATION STRATEGIES

8.25 (a) Weighted scores: 8.27

British International Airways 9×9 + 6×8 + 2× 5 + 8× 5 + 2× 4
Downtown rating = = 6.03
Milan Rome Genoa Paris Lyon Nice
31
3,415 2,945 3,425 3,155 3,970 3,660 7× 9 + 6 × 8 + 5× 5 + 4 × 5 + 9× 4
Suburb A rating = = 6.19
Munich Bonn Berlin 31
3,425 3,915 3,665 6× 9 + 8×8 + 6× 5 + 5× 5 + 6× 4
Suburb B rating = = 6.35
31
So, for part (a) the top three cities become: Lyon is best (3,970),
Suburb B has the highest rating, but weights should be examined
Bonn is second (3,915), and Berlin is third (3,665).
using sensitivity analysis, as the final ratings are all close.
(b) Weighted scores with hangar weights modified:
8.28
British International Airways 70×10+85×10+70×25+80×20+90×15 6,250
Milan Rome Genoa Paris Lyon Nice Site1factor rating = = = 78.125
80 80
3,215 2,825 3,345 2,795 3,730 3,460
60×10+90×10+60×25+90×20+80×15 6,000
Munich Bonn Berlin Site 2 factor rating = = =75.0
3,065 3,555 3,585 80 80
85×10+80×10+85×25+90×20+90×15 6,925
So, for part (b) the top three cities become: Lyon is best (3,730), Site 3 factor rating = = =86.56
80 80
Berlin is second (3,585), and Bonn is third (3,555).
90×10+60×10+90×25+80×20+75×15 6,475
Site 4 factor rating = = =80.94
(c) German cities reweighed on financial incentives: 80 80

British International Airways Site 3 has the highest rating factor, 86.56, and should be selected.
Munich Bonn Berlin
Weighted Score 3,320 3,810 3,840 8.29
Yes, increasing the financial incentive factors to 10 for the three (a)
German cities of Munich, Bonn, and Berlin changes the top three
cities to Berlin (3,840), Bonn (3,810), and Lyon (3,730).

ADDITIONAL HOMEWORK PROBLEMS

Here are solutions to additional homework problems
that appear on our Web sites, www.myomlab.com and
www.pearsonhighered.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 1,000,000 + 73X = 800,000 + 112X
200,000 = 39X, or X = 5,128
and to each “factor”:
(b) For 5,000 units, Perth is the better option.
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 rat-
ings are 5.86, 8.48, and 6.34. The shopping mall receives the
highest rating using this site selection approach.

Copyright ©2014 Pearson Education, Inc.

 CHAPTER 8 LOCATION STRATEGIES 119

8.30 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)
(a)
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

Post Office (x,y) per Day

Ybor City (10,5) 3

Davis Island (3,8) 3
The total cost equations are: Dale-Mabry (4,7) 2
Palma Ceia (15,10) 6
Atlanta: TC = 125,000 + 6 × x
Bayshore (13,3) 5
Burlington: TC = 75,000 + 5 × x
Temple Terrace (1,12) 3
Cleveland: TC = 100,000 + 4 × x
Denver: TC = 50,000 + 12 × x Hyde Park (5,5) 10

(b) Denver is preferable over the range 0–3,570 units. Bur- 10 × 3 + 3 × 3 + 4 × 2 + 15 × 6 + 13 × 5 + 1 × 3 + 5 × 10

Cx =
lington is lowest cost at any volume exceeding 3,570 3 + 3 + 2 + 6 + 5 + 3 + 10
but less than 25,000 units. Atlanta is never lowest in 255
cost. Cleveland becomes the best site only when vol- = = 7.97
32
ume exceeds 25,000 units per year.
5 × 3 + 8 × 3 + 7 × 2 + 10 × 6 + 3 × 5 + 12 × 3 + 5 × 10
(c) At a volume of 5,000 units, Burlington is the least- Cy =
3 + 3 + 2 + 6 + 5 + 3 + 10
cost site.
214
8.31 = = 6.69
32
The proposed new facility should be near (7.97, 6.69).

8.33 With equal weights of 1 for each of the 15 factors:

City Map Coordinates Shipping Load
Total Average
A 2,1 20
Spain 39 2.60
B 2,13 10
C 4,17 5 England 52 3.47
D 7,7 20 Italy 50 3.33
Poland 41 2.73
E 8,18 15
F 12,16 10 England is the top choice.
G 17,4 20
H 18,18 20
120

Copyright ©2014 Pearson Education, Inc.

120 CHAPTER 8 LOCATION STRATEGIES
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
SOUTHERN RECREATIONAL VEHICLE COMPANY
1. Evaluate the inducements offered Southern Vehicle Company
by community leaders in Ridgecrest, Mississippi.
The inducements offered Southern Recreational Vehicle
Company are not unusual. Such inducements are offered in
anticipation of the benefits to be derived from the relocation
decision. Among the more common financial inducements is
an arrangement under which a community development firm
will purchase a plant facility and lease it to a company on a
long-term basis. Whenever financial inducements are extraor-
dinary, management should realize that there must be
something undesirable about locating in that community.
2. What problems would a company experience in relocating its
executives from a heavily populated industrialized area to a
small, rural town?
A major problem in relocation decisions is the reluctance of
executives to move from industrialized, heavily populated
areas to small, rural towns. Often, the educational, recrea-
tional, and cultural opportunities are lacking. In addition,
residential housing, shopping facilities, medical facilities,
and adequate police and fire protection play an important
role in the decision of executives to relocate.
3. Evaluate the reasons cited by Mr. O’Brian for relocation.
Are they justifiable?
Matters of economics are certainly justifiable reasons to relo-
cate. If a firm can generate more revenue, operate more effi-
ciently, and experience lower costs at another site, relocation
should certainly be considered. However, the allegation that
the union forced unreasonable demands on the company
should be seriously questioned. Concessions and provisions
are bargained; they are not forced on either the company or
the union.
4. What responsibilities does a firm have to its employees when
a decision to cease operations is made?
Whenever the management of a firm decides to cease opera-
tions in a given location, it has the responsibility to aid its
employees in finding suitable employment in that commu-
nity. Such assistance can take various forms, including
personal contacts with other employers and personal recom-
mendations. In addition, the employer has a responsibility to
notify its employees of the decision as soon as it has been
finalized in order to give each worker ample time to find
employment elsewhere. Finally, severance pay should be
considered in an attempt to alleviate financial hardships on
workers who have been unsuccessful in their attempts to find
employment elsewhere. If the company has more than 500
employees, closing to avoid unionization is illegal.
Copyright ©2014 Pearson Education, Inc.
VIDEO CASE STUDIES
LOCATING THE NEXT RED LOBSTER
1
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 popu-
lation, 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 manufac-
turing 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). Inci-
dentally, in 2010, Darden announced it will begin to open facili-
ties outside the U.S. and Canada.
2 WHERE TO PLACE THE HARD ROCK CAFE
1. The attached report details the information that Munday col-
lects 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.
 CHAPTER 8 LOCATION STRATEGIES 121

HARD ROCK CAFE HARD ROCK REPORT (CONT’D)

STANDARD MARKET REPORT (OFFSHORE) 4. Attendance
5. Future Bookings
Executive Summary 6. Expansion Plans
7. Major Conventions
Introduction

Purpose Attractions

Product Type (e.g., franchise or company owned, cafe,
Entertainment (Including location, seats, attendance)
hotel, casino) 1. Theaters (Including live performance space)

Overview of City/Market (e.g., set context) including 2. Cinemas (Including IMAX)
history, macro-economic summary 3. Theme Parks
4. Zoo/Aquarium
Demographics (Local, City, Region SMSA, or
5. Historic Sites
equivalent)

Sports (Capacity, annual attendance, location, age

Population (Trend analysis, if possible)
of facility, etc.)
1. Number
1. Soccer
2. Age
2. Rugby
3. Households
3. Baseball
4. Average Household Income
4. Minor Leagues

Economic Indicators (Trend analysis, if possible)

Retail (Size, tenants, visitors, seasonality)
1. Cost of Living Index (compared to national average)
1. Regional Shopping Centers
2. Unemployment
2. Discount Shopping Centers
3. Size of Workforce
3. Shopping Districts
4. Employment by sector
5. Major employers Transportation
Visitor Market
Airport
1. Age

Tourism/Business Visitor (Trend analysis, if possible)
2. Passengers Annually
1. Number
3. Airlines (Indicate hub city)
2. Origins
4. Direct Flights
3. Length of Stay
4. Average Spend
Rail
5. Size of Party
Road
6. Reasons for Visit
Sea/River
7. Frequency of Repeat Visits
8. Seasonality Restaurants (A selection of restaurants in key areas of the
9. Method of Transportation target market)

Hotels (Trend analysis, if possible) 1. Name

1. Hotel Room Inventory 2. Location
2. Occupancy Rates (Annual and monthly for 3. Type
seasonality) 4. Seats
3. Room Rates 5. Age
4. Function Room Demand 6. Estimated Gross Sales
5. Recent Development 7. Average check
6. Future Development 8. Size of Bar
9. Outside Dining Facilities

Convention Center (Trend analysis, if possible)
1. Size
2. National Ranking
3. Days Booked per annum

Copyright ©2014 Pearson Education, Inc.

122 CHAPTER 8 LOCATION STRATEGIES

HARD ROCK REPORT (CONT’D)

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)
3. Based on the survey data, rating “comfort” and “national
Real Estate Market Overview
image” as 1s, “convenience” as a 2, and “cost” and “guaranteed
1. Introduction availability” as 4s, the results (using A = 4, B = 3, C = 2, D = 1,
2. Retail Rents F = 0 for grades):
3. Recent Developments Sum of Rating’s (Weighted Averages in Parentheses)
4. Future Developments Dallas Cowboys
Existing Site New Site
Site
HRC Comparable Market Analysis
Students 36 (3) 21 (1.75) 35 (2.92)
1. Identify comparable existing HRC markets Boosters 34 (2.83) 23 (1.92) 47 (3.92)
2. Explain similarities (e.g. regional population, visitors, Faculty/staff 43 (3.58) 23 (1.92) 35 (2.92)
hotel rooms, seasonality, etc.)
3. Prepare city P&L spreadsheet analysis Students are almost neutral between the existing site and the
Dallas site. Boosters strongly prefer Dallas. Faculty/staff strongly
Conclusion prefer the existing site. No group ranks the new site near campus
1. Estimate of Gross Food & Beverage Revenue for as their first or second choice.
market in General with backup and comparables 4. The expansion of the existing stadium appears preferable
2. Estimate of Gross Merchandise Revenue for market even at annual attendance of 500,000 fans.
in General with backup and comparables 5. Gardner used the factor rating method to rate the constituency
3. Preferred locations responses. This was appropriate for evaluating the qualitative
4. Sizzle (How will we make ourselves special in this values. He should consider weighting the criteria as the admini-
market?) stration did ultimately.

ADDITIONAL CASE STUDY*

SOUTHWESTERN UNIVERSITY: E
1. The five factors appear reasonable. Many others could be
included, such as potential parking or concession revenue, park-
ing, 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

*
This is the solution to the case that appears on our Web sites www.pearsonhighered.com/heizer and www.myomlab.com.
Copyright ©2014 Pearson Education, Inc.
Another random document with
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huge pile of them, enough sometimes to last several weeks,
and it cannot be denied that toward the end, one needed to
be very hungry to relish them. We had corn bread also, for
Simon cultivated one of the best of the small farms into
which the domain was divided; but we ate it as a great
treat, as English children eat plum-cake.

We lived somewhat more luxuriously than most of our

neighbors, for Jeanne had been cook at the great house like
her mother before her, and Simon was wont to boast that
his wife could dress him a dish of eggs in as many different
ways as there are days in a month. Still we lived very
plainly, and I fared like the rest. I learned to read from
Jeanne, who was a good scholar and spoke very pure
French, and she also taught me to sew, to spin, and to knit,
for the Norman women are famous knitters. Besides these
lessons, which were my tasks and strictly exacted, I learned
to milk and churn, to make hay and plant beans, and, in
short, to do all that Lucille did.

We all had our daily tasks of Scripture to learn by heart,

according to the admirable custom of the French reformers,
and we also learned and sang Clement Marot's hymns and
psalms. I have still in my possession an old French Bible
with these psalms bound in the same volume. The index is
curious: certain psalms are distinguished as "To be sung
when the church is under affliction and oppression; when
one is prevented from the exercise of worship; when one is
forced to the combat; to be sung on the scaffold." Such are
some of its divisions—very significant, certainly.

On Sundays we learned the Catechism, and the "Noble

Lesson" which had come to us from our Vaudois ancestors,
read the stories in the Bible, and took quiet walks in the
fields and lanes. Our Roman Catholic neighbors used to
assemble after mass on the village green for dancing and
other sports, but none of the Reformed were ever seen at
these gatherings.

Once, when David was about fourteen, he ran away

from home and went to Granville to see the great
procession on the feast of St. Michael, which fell that year
on a Sunday. Lucille did not know where he had gone, but I
did, for he had told me his intention, and I had vainly tried
to dissuade him. I did not mean to tell, but I was forced to
do so. I shall never forget the horror of his mother nor the
stern anger of his father.

"The boy is lost to us—lost forever!" I heard Jeanne say

to her husband.

"No, no, ma bonne!" answered Simon soothingly. "The

boy has done wrong, no doubt, but he will return—he will
repent—all will be well."

"Ah, you do not know!" returned Jeanne in a shrill

accent of horror. "There are monks at Granville—
missionaries. He will be betrayed into some rash act of
worship—a reverence to the image—an entry into the
church. They will call it an act of catholicity—they will take
him away—he will never return to us. Or if he should refuse
them, they will accuse him of blaspheming the Virgin and
St. Michael."

Jeanne threw herself down in her seat and covered her

eyes, and Simon's calm face was clouded with grave
anxiety; but he spoke in the same reassuring tone.

"Little mother, you are borrowing trouble. Is not our

Lord at Granville as well as here, and can he not take care
of our son? I trust he will be betrayed into no rashness;
though the idle curiosity of a child has taken him in the way
of danger."
 "But, Father Simon, will God take care of David now
that he has been a naughty boy?" I ventured to ask.

Simon smiled.

"Ah, my little one, what would become of the best of us

if God did not take better care of us than we do of
ourselves. Nevertheless, to run into needless danger is a sin
of presumption. There are dangers enough hanging over
our heads, let us be as careful as we may."

I had lived, so to speak, in an atmosphere of danger all

my life, but I think I now realized it for the first time.

"What do you mean by an act of catholicity?" I asked.

"Is it anything wicked?"

Simon and his wife looked at each other, and then my

foster-father put out his hand and drew me to his side.

"Listen to me, little Vevette!" said he, laying his hand on

my head and turning my face toward his. "It is hard to
sadden thy young life with such a shadow, but it is needful.
Yes, the shadow of the cross, which God hath laid on his
church, falls also on the little ones. Attend, my child! Thou
must never, never," he repeated, with some sternness in his
voice, "on any pretext, or on any persuasion, no matter
from whom it comes, enter a church or bow thy head to any
image, or kiss any image or picture, or make the sign of the
cross, or sing any hymns so-called, or canticle to the Virgin
or the saints. If thou dost any such thing, the priests will
perhaps come and take thee away from thy parents to shut
thee up in a convent, where thou wilt never more see one
of thy friends, and from which thou wilt never escape with
life except by renouncing thy God and thy religion!"
 "I will never renounce my religion!" I cried with
vehemence. "My uncle did so, and my father says he has
disgraced his ancient name."

"Alas, poor man, if that were all!" said Simon. "But now
wilt thou remember these things, my child?"

"I will try," said I humbly; for I remembered that only

yesterday I had been humming the air of a hymn to the
Virgin which had struck my fancy. "But oh, Father Simon, do
you think they will take David away and shut him up in the
monastery yonder?"

"I trust not," said Simon, and then he added, with

vehemence, "I would rather he were sunk before my eyes in
the deepest sands of the Grève."

"I think Vevette is as bad as David," said Lucille, who

had not before spoken. "She knew he was going, and she
did not prevent him. If I had known, I should have told
mother directly."

"Yes, thou art only too ready to tell," replied her mother.
"Take care that no one has to tell of thee."

"And remember that spiritual pride is as great a sin as

disobedience, and goes before a fall as often, my Loulou,"
added her father.

"I did not know what to do," said I. "Mother Jeanne

does not like to have us tell tales;" which was true.

"Thine was an error in judgment, my little one. I am not

angry with you, my children. Another time, you will both be
wiser, and David also I trust. Nov run up to the top of the
hill and see if you can see him."
 We went out together, but not hand in hand as usual. A
drizzling rain was falling, but we were too hardy to mind
that. Our sabots or wooden shoes were impervious to wet,
and our thick homespun frocks almost as much so. No
sooner were we out of hearing of the elders, than Loulou
overwhelmed me with a torrent of reproaches mingled with
tears.

"It is you—you, Vevette, who have sent my brother

away," she cried. "You knew he was going, and you did not
try to stop him."

"That is not true," said I calmly. I was as angry as

herself, but it was always a way of mine that the more
excited I was, the quieter I grew. "I said everything I
could."

"Yes, you said everything; why did not you do

something. If he had told me—but no! Everything is for
Vevette, forsooth, because she is a demoiselle. His poor
sister is nothing and nobody. You try every way to separate
him from me, and make him despise me. I wish—" but a
burst of angry sobs choked her voice.

"Yes, I know what you wish, and you shall have your
wish," said I, for I was now at a white heat.

Loulou began to be scared, and, as usual, as I grew

angry, she began to cool down.

"Well, I think you ought to have told, but to be sure you

are only a little girl," she added condescendingly. "As father
says, when you are older you will know better."

This put the climax. Nobody likes to be called "only a

little girl."
 I did not say a word, but I fumed and walked away from
her. I had had a glimpse of a figure coming up the hollow
lane, and I was determined to meet David before his sister
did.

"Vevette, where are you going?" called Loulou. "Come

back; you will be wet through."

I paid no attention to her, but, quickening my steps, I

passed a turn in the lane, and as I did so, David caught me
in his arms.

"Vevette! What are you doing here, and what makes

you so pale? Is your heart beating again?" For I was subject
to palpitations which, though probably not dangerous, were
alarming. "Here, sit down a moment. What frightened you?"

"You—you did," I gasped, as soon as I could speak. "I

thought they would carry you off—that we should never see
you again."

"Was that all? There was no danger," said David, with

an odd little smile. "I did not go near them."

"Did not go near them!" repeated Lucille, who had now

come up with us. "Why not?"

"I did not think it right," answered David manfully. "I

meant to go when I set out, but Vevette's words kept
ringing in my ears: 'It is mean and cowardly to pain thy
mother's heart just for a pleasure.' So I turned aside and
went to sit a while with Jean Laroche, who is laid up still
with his sprained ankle."

"Then you never went near the procession at all—you

never saw it," said Lucille, in a tone of disappointment, as
David shook his head. "I thought you would at least have
something to tell us. What are you laughing at,
mademoiselle, if I may be so bold as to ask?"

"At you," I answered with perfect frankness. "At first

you are enraged enough to kill me because I did not keep
David from going, and now you are vexed at him because
he did not go."

"But you did keep me, and I should have come home at
once, only the poor Mother Laroche asked me so earnestly
to come in and amuse Jean a little. But I must hurry home.
Come, girls."

Lucille and I did not go into the house, but into the
granary, which was one of our places of retirement. I took
up an old psalm-book and began turning over the leaves.
Lucille stood looking out of the door. At last she spoke.

"So you did hinder him, after all?"

"Yes, what a pity!" I answered mischievously. "Else he

might have something to tell us. But I am only a little girl,
you know. When I am older I shall know better. But there,
we won't quarrel," I added. I could afford to be
magnanimous, seeing how decidedly I had the best of it. "It
is worse to be cross on Sunday than to go to see
processions. Come, let us kiss and be friends."

Lucille yielded, but not very graciously. In fact, she was

always rather jealous of me. She said I set her father and
mother up against her, which certainly was not true, and
that David liked me the best, which might have been the
case, for she was always lecturing him and assuming airs of
superiority, which irritated him, good-tempered as he was. I
do not think she was very sorry when it was decided that I
should leave the cottage and go home for good.
 I have dwelt more lengthily on this childish affair
because it was the first thing which made me at all sensible
of the atmosphere of constant danger and persecution in
which we lived even then.

CHAPTER II.
THE TOUR D'ANTIN.

THE very next day I was sent for to go and see my

mother. Jeanne accompanied me, and had a long private
conference, from which she returned bathed in tears. I
anxiously asked the cause of her grief.
 "The good Jeanne is grieved to part with thee, my little
one," said my mother kindly. "Thy parents wish thee
henceforth to live at home with them."

I did not know whether to be pleased or grieved at this

news. I adored my beautiful pale mother, but it was with a
kind of awful reverence—something, I suppose, like that a
nun feels toward an image of the Virgin; but I had never
learned to be at all free with her. Could I ever lay my head
in her silken lap when it ached, as it often did, or could I
prattle to her as freely of all my joys and sorrows as I did to
Mother Jeanne? Other images also arose before my eyes—
images of lessons and tasks and the awful dignity I should
have to maintain when I was Mademoiselle Genevieve
instead of only little Vevette.

To offset these I had my room—a room all to myself—a

bed with worked hangings, and a carved cabinet. Then
there were lessons on the lute and in singing, which I had
always wished for. On the whole, however, the grief
predominated, and I burst into tears.

"Fie then!" said Jeanne, quite shocked at my want of

breeding, though she had been sobbing herself a moment
before. "Is it thus, mademoiselle, that you receive the
condescension of madame your mother? What will she think
of your bringing up?"

"Madame could think but ill of her child did she show no
feeling at parting with her nurse," said my mother kindly.
"But cheer up, my little daughter; I hope you will be happy
here. We will often visit our good friend. Come, do not show
to your father a face bathed in tears."

I wiped my eyes, kissed my mother's hand, which she

held out to me, and managed to say, "Thank you,
madame!" in a manner not quite unintelligible.

Then Jeanne humbly preferred her request. Might I

return to the farm for one day to partake of a farewell feast
which she had it in mind to prepare?

My mother smiled and consented, and I returned to the

farm feeling that I had had a reprieve.

The feast was a grand affair, though the company was

small, consisting only of our own family and Father Simon's
father and mother—very old people who lived in a cottage
down near the sea-shore.

Father Simon picked out his reddest apples and the

finest clusters of raisins and nuts. Mother Jeanne made the
most delicious galettes and cream soup thickened with
chestnuts, and spread her whitest and finest cloth. The old
people were the only persons of the company who
thoroughly enjoyed themselves. Old Sablot chirped like a
cricket, and told old stories of the wars of the League and of
Henry of Navarre, and his wife commended the soup and
cakes, the eggs and custards, and imparted choice secrets
in cookery to her daughter-in-law, who received them with
all due deference, though she often said that no Norman
woman ever learned to cook. But she was always a most
dutiful daughter to the old people, and had quite won their
hearts, though they had been somewhat opposed to
Simon's marriage in the first place.

We children were very silent, as indeed became us in

presence of our elders. And though we were helped to
everything good on the table, we had not much appetite,
and stole out, as soon as we were dismissed by a nod from
the mother, to hide ourselves in the granary. Here we had a
playhouse and some dolls of our own making, though we—
that is, Lucille and I—were rather ashamed of playing with
them.

David had also a work-bench with tools and a turning-

lathe, which had been his grandfather's. The old man had
given them to him on his last birthday, and David had
learned to use them very cleverly.

We did not speak for a moment or two, and then David

observed:

"How dusty it is here! To-morrow we must sweep out all

the chips and shavings, and make the place tidy."

"To-morrow I shall not be here," said I sorrowfully.

"I suppose David and I can make the place neat for
ourselves if you are not here," said Lucille, taking me up
rather sharply.

"Lucille!" said her brother reproachfully. And then

turning to me, "But you will come and see us very often."

"If I can," said I; "but I suppose I shall have a great

many lessons to do now."

"Of course you will," said Lucille; "you will have to learn
to play the lute and to write and work embroidery, and a
hundred other things. You will be a great lady, and we
cannot expect you to come and visit us. David ought to
know better than to think of such a thing."

"Lucille, you are too bad to say such things!" I cried

passionately. "To spoil our last day so. I believe you are glad
I am going away."
 "I am not either," she answered indignantly; "I am as
sorry as David, only I don't want to be left out in the cold
while you two pity and pet one another."

"Children, children!" said a voice which made us all

start.

We looked toward the door, and there stood the curé of

the parish, Father Francois. He was old and fat, and
somewhat too fond of eating and drinking; but he was a
kind old man, and lived in peace with every one, Reformed
or Romanist.

"What then!" he was wont to say. "They are all my

sheep, though some of them will persist in going astray. It
is not for me to throw stones at them or set the dogs on
them. Let me rather win them back by kindness."

"Children!" said he gravely. "Are you quarrelling?"

"No, monsieur," answered David, taking off his hat to

the priest, while Lucille and I drew together and clasped
hands, forgetting our difference in fear of we knew not
what.

The old man observed the movement, and said, in a

tone of some emotion:

"But what, my little girls; are you afraid of?"

"No," answered David; "Monsieur has always been kind,

but he must know—"

"I know, I know!" said the priest, as David paused. "But

fear nothing from me. I shall not harm you. But, oh, my
children, if you would but return to the bosom of our Holy
Mother! Now, tell me, my son—just as a friend, you know—
why will you not invoke the mediation of the blessed
saints?"

"Because, monsieur, it is contrary to the Holy

Scriptures," answered David respectfully.

"But the example of the holy saints of old, my son—the

teachings of the earliest church—consider!"

"Monsieur," replied David, "as to the earliest teachings

of the church, I suppose they are to be found in the
Gospels, and I read there that when certain women would
have brought their children to our dear Lord, the disciples,
instead of interceding for them, forbade them."

"Oh, the Scriptures—always the Scriptures!" said the

priest, pettishly enough.

"They are the words of God, monsieur!"

"True, my child, but you may see by their effects that

they are not fit for every one to read. And yet I don't know
how it is," he added musingly; "they certainly are the words
of God, and meant to do people good, but no sooner do
they begin to study than they become heretics."

The old curé ruminated a moment over this riddle, and

then, apparently giving it up as hopeless, he took a large
pinch of snuff and smiled benignly upon David.

"Ah, well, my son, I did not come to argue, but to ask a

favor in the interest of charity. My poor sister, who is dying
in a decline, as you know, has a fancy for some fresh eggs,
and there are none to be had. But I know your mother has
uncommon skill in the management of poultry, and I
thought perhaps she might help me to one or two."
 "That I am sure she will," said David. "If monsieur will
walk into the house and sit down, I am quite certain I can
find two or three eggs quite new laid."

Father Simon looked surprised as the old priest entered,

but made him courteously welcome, and Mother Jeanne
directed Lucille to put up a jug of cream and a small jar of
marmalade for the invalid. The curé thanked her, accepted a
glass of cider, and offered his snuff-box to old Sablot.

"Tut, tut! Don't be afraid, man," said he as the other

hesitated. "That is not an act of catholicity, as they call it!"
And he muttered something under his breath which did not
sound like a blessing.

"Monsieur need not wonder that we are timid,"

remarked Father Simon.

"No, no, it is no wonder; and from all I hear, I fear that

times are not likely to be easier for you, my poor Sablot.
Have you been to Sartilly of late?"

"No, monsieur, I have little to take me that way."

"It is as well. Take care if you do go. It is said there are

wolves about, or likely to be; and you know that she-wolves
carry off children at times. Many thanks to you, Jeanne," he
added, rising and taking the little basket which my foster-
mother had prepared; "my blessing be upon you! An old
man's blessing can do no harm, you know. Farewell!"

He closed the door, and for a moment the party sat

looking at each other in silence.

"What does he mean?" asked Jeanne at last.

 "He means to give us a warning, the poor, kind old
man," said Simon. "I doubt not, he made his errand on
purpose."

"Why did he not speak more plainly then?" said Jeanne

in some impatience. "Of what use is such a warning as
that?"

"I suppose he dared not. Remember, my Jeanne, in

what a difficult place he stands. He has risked the
displeasure of his superiors already by not giving
information."

"But what can he mean by wolves on the road to

Sartilly?" asked Jeanne.

"That we must find out, and meantime we must be

doubly on our guard."

"They are all alike—all wolves alike!" said the old man,
in his thin voice. "Some are in their own skin, some in
sheep's clothing; some are like the loup-garou,* and speak
with the voice of a man; and they are the worst of all."

* What the Germans call the wehr-wolf, a creature

compounded of brute and human.

"I do not think the curé looks much like a wolf," I

ventured to say; for I had been rather taken with the old
man's ways. "He is too fat. Wolves are always thin, and
they howl and snarl."

"Ah, mademoiselle! But remember the loup-garou can

take any forum or any voice he pleases," said the old man.
 "Is there really a loop-garou?" asked David. "I thought
it was only an idle tale."

"An idle tale indeed! What is the world coming to? Did
not my grandfather know one—a man who used to turn
himself into a wolf and scour the country at night, followed
by his pack, and devouring all in his way, but especially
women and children. They caught him at last, and he was
burned at Sartilly, protesting his innocence all the time."

"Perhaps he was innocent," said David.

"Thou shouldst not answer thy grandfather, David," said

his mother mildly; "that is rude."

"No, no; he meant no harm," said the old man. "Let it

pass. You women are always finding fault with a boy. But as
to the loup-garou. However, we will tell no more tales to
scare mademoiselle. It is well, at all events, to remember
that the good Lord is above all. But it was good snuff the
poor priest had."

I inwardly resolved that I would try to procure some

snuff for the old man, and that I would bribe him with it to
tell me more tales of the loup-garou, about which I was
very curious. I knew there was no use in asking Mother
Jeanne, for she never would tell me frightful stories.

Indeed, the Reformed were not nearly as much under

the influence of superstition as their neighbors of the other
faith. To the last, every corner had its goblins. In this dell,
the "Washers" were to be seen by the unwary night
traveller, and he who acceded to their courteous request to
assist them in wringing a garment, had his own heart's
blood wrung out, and became a pale spectre himself. If he
escaped these ghostly laundresses, there were the dancers
on the field above, who were equally dangerous, and
another female demon who allured young men into lonely
places and there murdered and devoured them. Our country
neighbors here in Cornwall are bad enough, with their
piskies, and fairies, and wish-hounds, and what not, but
they are not so bad as the people in Normandy and
Brittany.

That night Lucille and I slept together for the last time.
Her jealousy was quite overcome for the time, and we
promised that we would always be good friends, and built
many castles in the air on the basis of that future
friendship. She was a girl of strong character in some
respects, and of great talents, but she had one fault which
made her and those about her very uncomfortable at times,
and which came near working her utter ruin. It is not likely
that she will ever see these memoirs, but if she should do
so, she would not be hurt by them. The fires of affliction
which she has passed through have burned up the dross of
her character, and little is left but pure gold.

The next morning we went up to the château, and

Jeanne took leave of me with many tears.

Father Simon had prayed especially and earnestly for

me at our morning devotions, and had solemnly given me
his blessing. David had shaken hands with me, and then run
away to hide his feelings. It was a sorrowful parting on both
sides, and when I had a last sight of Jeanne turning at the
bend of the path to wave her hand to me, I felt more like an
exile in a strange land than a child coming home to its
father's house. So I thought then, knowing nothing of an
exile's woes.

"Now, my child," said my mother, coming into my little

room, where I had shut myself up to weep, "let these tears
be dried. They are natural, but even natural grief must not
be indulged too far. Bathe these eyes and flushed cheeks,
arrange your dress, and come to me in my room in half an
hour."

My mother spoke gently and kindly, but with decision,

and there was that about her which made her least word a
law. Besides, I believe, to say the truth, I was rather tired
of my grief, and quite willing to be consoled, and to indulge
my curiosity as to my new home. So I bathed my eyes as I
had been bidden, smoothed my hair, which never would
stay under my cap properly, but was always twisting out in
rebellious little curls, and began to examine my room.

It was an odd little nook, opening from my mother's, as

is the custom in France for young ladies of good family. It
occupied one of the corner turrets which flanked the square
tower of which I have spoken. The walls were so thick and
the inclosed space so small that I used to compare the
room in my own mind to one of the caves hollowed in the
rock by the persecuted Vaudois of which I had heard from
Jeanne. The bed was small, with heavy damask hangings
and an embroidered coverlet. There was no carpet on the
floor, which was of some dark wood waxed to a dangerous
smoothness; but a small rug was laid by the side of the bed
and before the little toilette-table. The rest of the furniture
consisted of a chair and stool, and a small table on which
lay a Bible and two or three books in a language which I did
not understand, but which I took to be English. In an
ordinary French family, there would have been a crucifix
and a vase for holy water, and probably an image of the
Virgin as well; but it may well be guessed that no such
furniture found a place in our household.

Small and plain as the room was, it seemed magnificent

in my eyes, and I felt a great accession of dignity in being
able to call this magnificent apartment my own. I looked
out at the window—a very narrow one—and was delighted
to find that it commanded a view of the high road and a
very little tiny bit of sea, now at ebb and showing only as a
shining line on the edge of the sands. In short, I had not
half completed the survey of my new quarters before I was
in the best of spirits, and when my mother called me, I was
able to meet her with a smiling face. I should have said that
my room was elevated half a dozen steep steps above my
mother's. Indeed, there were hardly two rooms in the house
on a level with each other.

"Why, that is well," said my mother, kissing my cheek.

"You are to be my companion and pupil now, little daughter,
and I hope that we shall be very happy in each other's
society."

She then made me sit down on a low seat beside her

own chair, and examined me as to what I had learned. She
heard me read, examined me in the Catechism, and asked
me some questions on the Gospels, to all of which I gave, I
believe, satisfactory answers. She looked at my sewing and
knitting, and praised the thread, both linen and wool, with
which I had taken great pains.

"That is very good thread," said she; "but I must teach

you to spin on the wheel, as they do in England. You shall
learn English too, and then we can talk together, and there
are many pleasant books to read in that language. You
must learn to write also, and to embroider."

"Is English very hard, madame?" I ventured to ask.

"It is called so, but I hope to make it easy to you. By

and by, when we have mastered the writing, we will have
some lessons on the lute. But now we must consult Mistress
Grace about your dress. Your father will like to see you
habited like a little lady."

My mother blew the silver whistle which always lay

beside her, and Mistress Grace entered from the anteroom.
She was a tall, thin personage, English to the backbone. I
never saw a plainer woman in my life, but there was that in
her face which at once attracted confidence and regard. She
was my mother's special attendant, and ruled the household
as her vicegerent with great skill and firmness. The servants
called her Mamselle Grace, or, more commonly, simply
Mamselle, and treated her with great respect, though they
sometimes laughed at her English French after her back was
turned. I was taught to call her Mrs. Grace, in English
fashion.

I was greatly in awe of her at first, but I soon learned to

love her as well as Mother Jeanne herself.

Mrs. Grace greeted me with prim courtesy.

"We must take orders for some dresses for our young
lady, Grace," said my mother, speaking French. "Will you
see what we have for her?"

Mrs. Grace opened an armoire, from which she drew a

quantity of stuffs and silks, and an animated conversation
ensued.

My mother kindly allowed me to choose what I liked

best, and we were in the full tide of discussion, when there
was a knock at the door, and my father entered with a very
disturbed face, which brightened as he met my mother's
glance.

"Heyday, what have we here?" said he. "Has Mrs. Grace

taken a new doll to dress?"