Ask Operation Management Expert

Ranch Development Project One hundred years ago, a high plains area near the continental divide in Colorado was used as a working ranch. The views were majestic, although the winters could be harsh. As a result of the boom in skiing, snowmobiling, and other winter sports, the area quickly became a major tourist attraction. The result was a higher population base to support tourism and increased property values. During the late 1960s and 1970s, the area experienced dramatic growth. Many people from states such as Oklahoma and Texas vacationed here, and so purchased land, houses, or condominiums. Many property developers who finished their projects before the mid-1980s and early 1990s did very well financially. The success of these developers led to the organization of the Ranch Development Project. The Ranch Development Project was undertaken by two real estate companies in the Colorado high country and several investors from Oklahoma. The idea was to convert the working ranch into a luxury single-family development. The project became known as The Ranch. The average home price was $475,000, and it was not uncommon to have homes valued at more than $1 million. The center of the development was a first-class 18-hole golf course. Green fees could approach $100 per day, depending on services required. Some have claimed that the course is one of the best in Colorado. The Ranch also had a four-star restaurant located in a beautiful and spacious log cabin, which included a fireplace big enough for a 6-foot-tall person to walk into without hitting his head. Other amenities included a heated pool, lighted tennis courts, and a complete workout center. Free shuttle service was provided to the ski slopes a few miles away. To preserve the beauty of the area and to enhance property values, each home site varied from 1 acre to more than 20 acres. There were numerous building restrictions. Every home and structure had to be approved by the Ranch Development Board. Approval required developing a scale model of all buildings on the property and a complete set of blueprints. The average cost of preparing the necessary plans was $25,000. The concept of a footprint was also used. A footprint is a relatively small circular area on each plot of land. Homes and all structures had to be placed inside the footprint. Although the homeowner held title to the entire property, all structures had to be placed in the footprint unless special permission was given by the Ranch Development Board (a rare occurrence). Each homeowner had to pay monthly fees, depending on the location and value of the land. The fees could vary from $450 to more than $1,250 per month. These fees included water, sewer, cable TV, and access to the pool, tennis courts, and exercise facility. Golf and restaurant fees were additional. One of the developments in The Ranch is outlined in Figure 1. The development was not as close to the golf course as some of the others, but it had a beautiful trout stream and pond in the center. The footprints are shown in the network. Distances between footprints are given in hundreds of feet. Questions 1.) What is the least expensive way to connect all homes with water and sewer lines? Assume that minimizing total distance will also minimize total costs. 2.) The Ranch Development Board is considering the possibility of expanding the pond area. This would allow for boating, including sailing and water skiing. This would increase property values, but some distances would change. The distance for path 11–16 would be 11, and the distance for path 16–22 would be 14. What impact would this have on the plan for the water and sewer system?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91874940

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As