Professional Documents
Culture Documents
Production and Operation
Production and Operation
Production Locations
Regional regulations Room for expansion Safety requirements Site cost Personal factors
Location Models
Ranking Method Factors
Rating out of 5 Locat ion rating Out Of 10
4 3
8 2
6 3
5
3
2
6
4
5
10
18
20
15
3 2 2 5
10 7 6 4
8 9 4 3
30 14 12 20 145
24 18 8 12 136
To get the product rating coloumn multiply factor rating with location rating. Example 4 x 8 = 32 (a) 4 x 6 = 24 (b) Similarly ,Product rating column which haS more total will be preferred as a location in this ranking method.
Weight Model
Factor Rated Max. points 300 200 100 250 Points assign to locatio n (a) (b) 200 250 150 100 220 150 100 200
Pollution regulation
Living condition Total
30
20
20
150
100
125
790
845 Adopted
Variable cost 50
25
80000
18
Expected Sales = 2000units/year TC = TVC + TFC Total cost: A = 25000+50X2000=125000 B = 50000+25X2000=100000 C = 80000+18X2000=116000 Similarly,location B will be selected.
Distribution 40000 expences Rawmaterial 70000 expences Power & H2O supply 40000 expences
80000
30000
90000
20000
25000 40000
20000 30000
Rate of return = T. Sales T. expences x100 T. Investment Location x =25000-195000x100 20000 = 55000 x 100 =27.5% 200000
Location y = 300000 215000x100 200000 = 85000 X 100 =42.5% 200000 Location y is more suitable than others. Location z =250000 235000x100 200000 = 15000x100 =7.5% 200000
THANK
YOU