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Questions and Answers
What are the factors considered when finding the location of a distribution center using the centroid method?
What are the factors considered when finding the location of a distribution center using the centroid method?
What is another name for the centroid method mentioned in the text?
What is another name for the centroid method mentioned in the text?
Center of gravity
The centroid method finds sites at a ______________ point.
The centroid method finds sites at a ______________ point.
mathematical
What is the objective when balancing a production line?
What is the objective when balancing a production line?
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What are the three steps in locational break-even analysis method?
What are the three steps in locational break-even analysis method?
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What are some factors to consider in facility location? (Select all that apply)
What are some factors to consider in facility location? (Select all that apply)
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The factor-rating method is used to evaluate outsourcing costs.
The factor-rating method is used to evaluate outsourcing costs.
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The formula for solving for the Centroid in the centroid method is Cx = ∑dixVi / ∑Vi, Cy = ∑diyVi / ∑Vi. Here, Cx is the _____ and Cy is the _____.
The formula for solving for the Centroid in the centroid method is Cx = ∑dixVi / ∑Vi, Cy = ∑diyVi / ∑Vi. Here, Cx is the _____ and Cy is the _____.
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Study Notes
Module 6: Line Balancing
- The objective of line balancing is to minimize the imbalance between machines or personnel while meeting the required output.
- Strategies for balancing the production line load:
- Start with the precedence relationships
- Determine the cycle time
- Calculate the theoretical minimum number of workstations
- Balance the line by assigning specific tasks to workstations
- Line-balancing heuristics: used to find the solution by gathering tasks, sequencing, and assembly times for making the electrostatic wing component.
- Measuring the efficiency of line balancing: to evaluate the effectiveness of the line balancing strategy.
Module 7: Factors in Choosing Facility Location
- Factors to consider in facility location:
- Proximity to customers and suppliers
- Business climate
- Total costs
- Infrastructure
- Quality of labor
- Suppliers
- Other facilities
- Free trade zones
- Political risk
- Government barriers
- Trading blocs
- Environmental regulation
- Host community
- Competitive advantage
Module 8: Locational Break-Even Analysis
- Locational break-even analysis: a method of cost-volume analysis used for industrial locations.
- Three steps in the method:
- Determine fixed and variable costs for each location.
- Plot the cost for each location.
- Select the location with the lowest total cost for the expected production volume.
- Formula: Total Cost = Fixed Cost + (Variable Cost x Volume)
- Example: John Kros, owner of Carolina Ignitions Manufacturing, needs to expand capacity and is considering three locations – Akron, Bowling Green, and Chicago – for a new plant.
Module 9: Factor Rating Method
- Criteria used to evaluate sourcing locations:
- The factor-rating method is used to evaluate outsourcing.
- It instills objectivity into the process of identifying hard-to-evaluate costs.
- Steps in developing a factor-rating method:
- Develop a list of relevant factors called key success factors (KSF).
- Assign a weight to each factor reflecting its relative importance.
- Develop a scale for each factor.
- Management to score each factor.
- Multiply the score to its weight and get the total.
- Make a recommendation.
Module 10: Centroid Method
- The centroid method is a technique for locating single facilities that considers the existing facilities, the distance between them, and the volumes of goods to be shipped.
- Formula: Cx = ∑ dixVi / ∑Vi, Cy = ∑diyVi / ∑Vi
- Example: Hi-octane Refinery Company needs to locate an intermediate holding facility between its refining plant in Long Beach and its major distributors.
- The centroid method finds the location of the distribution center that minimizes distribution costs.
- It considers the location of markets, the volume of goods shipped to those markets, and the shipping cost (or distance).
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Description
This quiz focuses on the importance of line balancing in production management, including calculating available minutes per day and required units per day.
