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MGT2070 - Ch. 8.docx

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MGT 2070
Barry Stannard

MGT2070: Operations Management October 24, 2012 Chapter 8: Location Planning and Analysis  Hub-and-Spoke Structure o Point to point system  No guarantee of arrival of package or time of delivery o Hub-and-spoke technology  Match plane types to size of loads for each route  Location break-even analysis example o First calculate break-even point (BEP) to rule out options o Then calculate total cost (TC) o When determinate figures are not available, we reach a range to see what is the best option.  Between 1-1000, choose Akron. Between 1000-2500, choose Bowling Green. Over 2500, choose Chicago. o POM-QM use Location module  File  New  Cost-Volume Analysis  Factor Rating Example o Weights do not need to add up to 1, but is useful. o Weighted scores are very close, so we should test the extremes in a real world example.  Center of Gravity method o Finds location of single distribution center serving several destinations.  Use primarily for services  Cannot be used for large distances (not ac
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