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Location Decisions

A manufacturer of oak barrels has factories in the area at the location coordinates provided in the following table. Each coordinate unit represents approximately 10 miles. The yearly demand at each factory is also given below.

Factory             Demand    X-Coordinate    Y-Coordinate
Manchester       14,000        80                       60
Fayetteville       17,000        60                       10
Columbia            5,000        30                       90
Lawrenceburg     3,000        30                       20

Management has decided to build the new factory to supply raw material to these factories. The location of new factory must be central to the existing factories.

Respond to the following in a Microsoft Excel worksheet:

• What must be the map coordinates of the new factory? Graph locations of the four factories and the proposed raw material factory.

• Is the location of proposed raw material factory where you expected it to be based on the coordinates of the other factories? Why or why not?

• What is the major contributing factor leading to the location of the proposed raw material factory?

Support your responses with exs.

Cite any sources used.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M93137

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