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Two alternative plant layout designs are being proposed to produce a new product. The production will consist exclusively of labor-intensive assembly. The first alternative is a 300,000 sq.ft. Building (single story) and will use a one shift operation. The second alternative is a 100,000 sq.ft. Building (single story) and will use a three-shift operation. Under these assumptions, the production capacities of the two plants will theoretically be equal. Compare the two alternatives in terms of the following criteria:

A) Construction costs

B) Flexibility to adapt to the ups and downs in product demand

C) Labor availability

D) Work flow and material handling

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9751885

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