Homework Chs 8 9 MGT 400
Timothy O’Neal
MGT 400
Dr. Jones
2/3/15
The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The numbers of potential customers in each segment along with the coordinates are as follows. Location Coordinates Number of
Market Segment x y Customers
1 2 18 1,000 2 15 17 600 3 2 2 1,500 4 14 2 2,400
a. Which would be the best location by the center-of-gravity method?
Cx = [2(1,000) + 15(600) + 2(1,500) +14 (2,400)] / 6,500 = 47,600/6,500 = 7.32
Cy = [18(1,000) + 17(600) + 2(1,500) + 2(2,400)] / 6,500 = 36,000/6,500 = 5.538
b. If after five years half the customers from Segment 4 are expected to move to Segment 2, where should the drugstore shift, assuming the same criteria are adopted? Segment 4 : 2,400/2=1200 Segment 2 : 600+1200= 1800
Cx = [2(1,000) + 15(1,800) + 2(1,500) +14 (1,200)]/5,500=23,615/5,500 = 4.29
Cy = [18(1,000) + 17(1,800) + 2(1,500) + 2(1,200)]/5,500= 25,217/5,500 = 4.58
2. Peter's Paper Clips uses a sequential three-stage production process: (1) cutting wire to prescribed lengths, (2) inner bending, and (3) outer bending. The cutting process can produce at a rate of 150 pieces per minute; inner bending, 140 pieces per minute and outer bending, 110 pieces per minute
a. Determine the hourly capacity of each process stage and the number of machines needed to meet an output rate of 20,000 units per hour.
1. Cutting: 150(min) (60 min=9,000/hour) = 20,000/9,000=2.22 machines needed
2. Inner Bending:140/min (60)= 8400/hour 20,000/8400=2.38 machines needed
3. Outer Bending:110min(60)=6600/hour 20,000/6600=3.03 machines needed
b. Determine the hourly output rate of the production process. Which stage is a bottleneck?
1.) 2.22+2.38+3.03= 2.63 at the ending stage
MGT 400
Dr. Jones
2/3/15
The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The numbers of potential customers in each segment along with the coordinates are as follows. Location Coordinates Number of
Market Segment x y Customers
1 2 18 1,000 2 15 17 600 3 2 2 1,500 4 14 2 2,400
a. Which would be the best location by the center-of-gravity method?
Cx = [2(1,000) + 15(600) + 2(1,500) +14 (2,400)] / 6,500 = 47,600/6,500 = 7.32
Cy = [18(1,000) + 17(600) + 2(1,500) + 2(2,400)] / 6,500 = 36,000/6,500 = 5.538
b. If after five years half the customers from Segment 4 are expected to move to Segment 2, where should the drugstore shift, assuming the same criteria are adopted? Segment 4 : 2,400/2=1200 Segment 2 : 600+1200= 1800
Cx = [2(1,000) + 15(1,800) + 2(1,500) +14 (1,200)]/5,500=23,615/5,500 = 4.29
Cy = [18(1,000) + 17(1,800) + 2(1,500) + 2(1,200)]/5,500= 25,217/5,500 = 4.58
2. Peter's Paper Clips uses a sequential three-stage production process: (1) cutting wire to prescribed lengths, (2) inner bending, and (3) outer bending. The cutting process can produce at a rate of 150 pieces per minute; inner bending, 140 pieces per minute and outer bending, 110 pieces per minute
a. Determine the hourly capacity of each process stage and the number of machines needed to meet an output rate of 20,000 units per hour.
1. Cutting: 150(min) (60 min=9,000/hour) = 20,000/9,000=2.22 machines needed
2. Inner Bending:140/min (60)= 8400/hour 20,000/8400=2.38 machines needed
3. Outer Bending:110min(60)=6600/hour 20,000/6600=3.03 machines needed
b. Determine the hourly output rate of the production process. Which stage is a bottleneck?
1.) 2.22+2.38+3.03= 2.63 at the ending stage