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OPSM 301
Practice Problems
Problem 1:
A major drug store chain wishes to build a new warehouse to serve the whole
Midwest. At the moment, it is looking at three possible locations. The factors,
weights, and ratings being considered are given below:
Ratings
Factor Weights Peoria Des Moines Chicago
Nearness to markets 20 4 7 5
Labor cost 5 8 8 4
Taxes 15 8 9 7
Nearness to suppliers 10 10 6 10
For what unit sales volume should they choose each location?
Practice Problems
Transition
Problem 2: between Waco and Tijuana
300,000 + 5.75x = 800,000 + 2.75x
Balfours is considering building a plant in one of three possible locations.
3x = 500,000
They have estimated the following parameters for each location:
x = 166,000
For what unit sales volume should they choose each location?
Practice Problems
Problem 3:
Our main distribution center in Phoenix, AZ is due to be replaced with a
much larger, more modern facility that can handle the tremendous needs
that have developed with the citys growth. Fresh produce travels to the
seven store locations several times a day making site selection critical for
efficient distribution. Using the data in the following table, determine the
map coordinates for the proposed new distribution center.
Practice Problems
Problem 3:
Our main distribution center in Phoenix, AZ is due to be Truck replaced withTrips
Round a
much larger,
Storemore modern facility
Locations Mapthat can handle
Coordinates (x, the
y) tremendous needs
per Day
that have developed with the citys growth. Fresh produce travels to the
Mesa (10, 5) 3
seven store locations several times a day making site selection critical for
Glendale (3, 8) 3
efficient distribution. Using the data in the following table, determine the
Camelback
map coordinates for the proposed new(4, 7)
distribution center. 2
Scottsdale (15, 10) 6
Apache Junction (13, 3) 5
Sun City (1, 12) 3
Pima (5, 5) 10
(10*3) + (3*3) + (4*2) + (15*6) + (13*5) + (1*3) + (5*10) 255
Practice Problems
Cx = 3 + 3 + 2 + 6 + 5 + 3 + 10 = 32 = 7.97
Problem 3: Cy =
(5*3) + (8*3) + (7*2) + (10*6) + (3*5) + (12*3) + (5*10) 214
= 32 = 6.69
3 + 3 + 2 + 6 + 5 + 3 + 10
Demand 360
N= = = 1.34 orders per year
Q 268
Total cost for waiting = Total waiting time * Cost per hour =
10.67 * $12 = $128 per day.
2
Lq = = 1.125 people in the queue on average
2( )
Wq = 2( ) = 0.375 minutes in the queue waiting
Ls = Lq + = 1.87 people in the system
1
Ws = Wq + = 0.625 minutes in the system