Operations Mgmt Exam 2 Qualitative Questions

1 / 5
Give an example of how you might use a factor rating model to make a regional location decision
Click the card to flip 👆
Terms in this set (5)
For a regional location decision, relevant factors for locating a new manufacturing plant might include: (i) access to raw materials, (ii) access to skilled labor, (iii) wage rates, (iv) taxes, and (v) cost of living. I would establish a weight for each factor from 0 to 1 such that the weights sum to one. I would then score each candidate site on each factor on a scale of 1 to 10. I would compute a composite score for each site as the sum of the products of the weights and scores. The site with the highest composite score is the best choice.
Nature of output: product layouts are designed to produce highly standardized outputs, whereas process layouts should have the flexibility to produce non-standardized outputs.
Goals/objectives: The goals of the product layout problem are to maximize efficiency by minimizing the cycle time given a fixed number of stations, or minimizing the number of stations given a cycle time. The goals of the process layout problem are to minimize material movement distance, minimize employee travel distance, or possibly maximize customer travel distance.
Similarities: planning horizon length, similar cost objective functions, some of the same sources of flexibility such as overtime, demand forecast as input.Differences: inability to inventory services, harder to predict demand in services
Comment: Obviously, this question or one like it will not be on the exam.