location decision

1. From my my point of of view I can can say that that convenience convenience and comfort comfort it is is to same. I think  that we can replace comfort by availability. Availability of: communication( roads), necessary resource as a water,energy, system of communication etc. We can add one more important thing, it is a ‘outlet’ that means how many people will be coming on the metches-it is depends on localization and eventually costs of transport. 2. First option: Fixed cost= 1mln $ Variable cost 1$ per attendee Annual cost for an expected volume of 375 000= 375 000 + 1000000= 1 375 000$ Second option: Fixed cost= 5 mln $ Variable cost 2$ per attendee Annual cost for an expected volume of 375 000 = 5 000000$ + (2* 375 000)= 5 750 000$ Third option: Fixed cost= 1 mln $ per year  Variable cost 10$ per each of 15 000 students tickets sold for each game TVC= 10*15000*5 ---------------- = 2$ per attendee 375 000 Annual cost for expected volume of 375 000 = 1 mln + 2*375 000= 1750 000

Forecasts show that numbers of attendee will increase to 75 000 per game( we have 5 game each season so 75 000* 5= 375 000 per year) Chart chows that for this number of attendee we have to choose first option 1

3. a) Old stadium can be reconstructed once and it can exist for next 30 years. The price is not so expensive as in other options. The school has as mach money as they need for reconstruction so they don’t need to take a credit. Secondly the localization is not change so the students won’t be go by busses to the matches. Next, we can spend more money for more building teams and than we are sure that the stadion will be fixed on time. Every of groups told that the  prices conected with stadiums are lowest in the Old stadion.  b) New stadion will be most representativ in this case. Will be comfortable and will be have a lot of new solutions. Will be build near the city, what can reduce level of traffic jam before the matches and can influance on safety and noice level in the city. New stadium it is long term investicion and can get employement a many peopole as well during the building and of  course during the existing. c) The third option had definite advantages from the perspective of many, if not most, of the fans who attended the games. A large number already lived in the Dallas—Fort Worth area and would be spared the long commute and horrible traffic jams that always seemed to occur  in Stephenville on game days. While the actual noted price of $200,000 per game seemed high on the surface, the $1 million per season (there are five home games a year) was a drop in the bucket compared to the other options.What is more, supporters, students and stuff are sure that their team will be play in next season. Moreover every groups think that the comfort is rally good in Dallas stadium. Provide a complete list of reasons for not selecting each of the three sites. a) -high cost of modernization -high risk that the modernization take long time and it will no be ready to next season  b) - expensiv investicion( credit) - we don’t know if in the future we will be need so big stadium - it will be out of the city so we need make a good means of transport - long time of building stadium and all infrastructure connected with stadium c) - far away from campus -expensiv price for each match - lack their own stadium

4.

I recommended location A that mean mean the old stadium should be reconstruceted and should be  bigger and should have new facilities. My justyfication is based on forecasts.Stadium after the reconstruction will improve necessary quantity of siting place. Stadium will be modern and comfortable as a supporters want. The team will be feel freer playing at home at them own 2

stadium. Nowadays we can not take into account only economics factors,we should think  about people, bacause they are really important too. The absence of the own stadium may be the cause of failures in team competitions of Stephenvill, that means when the team don’t have success the sponsors can turn away. In consequence, absence of sponsors and own stadium, can make team decline to the lower leagues what can make absence of supporters.As we can see it is chain reaction. The proposal number 3 or the game for 10 years at the stadium Dallas won the largest  poparce from supporters as well as other groups and taking part in the poll. You can tell that the fans are the most important of the match and it is for them to build a stadium with stands, if they so overwhelmingly in favor of matches at the stadium Dallasów. Due to the convenience of their money and time you tried to sign a contract for 10 years and see situations. If everyone is happy with the extended a contract with the stadium in Dallas, or if  the benefit of another previously proposed options. For this moment, I don’t want build a new stadium.

5. Gardner used Factor Roating Method which contains of fallowing steps: 1. list list rel relev evan antt fact factor orss 2. assign assign impo importan rtance ce weight weight to each each fact factor or (0-1) (0-1) 3. devel develop op scal scalee for each each fac factor tor (1-6 (1-6)) 4. score score each each locatio location n using using factor factor scal scalee 5. multip multiply ly scores scores by weigh weights ts for each each factor factor and and total total 6. select select locat location ion weit weith h maxim maximum um total total score score The results are shown in the table below: Students rating of location Factors

First option 6

Second option 5

Third option 1

Guaranted avaliaibility Comfort

4

3

6

5

6

6

costs

6

3

5

convenience

National image

3

5

5

3

Booster’s ration of location Factors

First option 3

Second option 3

Third option 6

Guaranted avaliaibility Comfort

5

4

6

4

5

6

costs

6

4

6

convenience

National image

4

4

5

College staff rotation of location Factors

First option 5

Second option 4

Third option 3

Guaranted avaliaibility Comfort

6

4

6

4

6

5

costs

6

3

5

convenience

National image

5

Factor Concenience Guranted avaliability Comfort Costs  National image

5

4

Weight for each factor  0.5 1 0.25 1 0.25

4

When we multipling scores by weights for each factor we get: First option 46.25 Second option 34.75 Third option 46.75

This method shows that we should rent the stadion from Dallas Cowboys. However  expending the existing stadion also seems to be a good idea.

6. Besides the factor rating method and locational break –even analysis wchich was used in our  homework we know other methods as a:

center of gravity method Finds location of  single  single distribution center serving several destinations - Used sed pri prim maril arily y for for serv servic ices es - Considers - Lo Loca cati tion on of of exi exist stin ing g dest destin inat atio ions ns - Ex Exam ampl ple: e: Mar Marke kets ts,, ret retai aile lers rs etc etc.. - Volume to to be be sh shipped - Shipp hippin ing g dis dista tanc ncee (or (or cost cost)) - Ship Shippi ping ng cos cost/ t/un unit it/m /mil ilee is cons consta tant nt - Place Place existi existing ng loca locati tions ons on a coordi coordina nate te gri grid d Grid has arbitrary origin & scale o Maintains relative distances o - Calculate  X  & Y  coordinates for ‘center of gravity’ Gives location of distribution center  o Minimizes transportation cost o Center of Gravity Method Equations

X Coordinate ∑ d ix Wi

Cx =

i

∑ Wi i

dix

= x coor oordin dinate ate of location i 5

Wi diy

=Volume of of goods moved to or  or  from location i = y coor oordin dinate ate of location i

Y Coordinate ∑ d iy Wi

Cy =

i

∑ Wi i

Coordinate Locations of Four Quain’s Department Stores and the Center of Gravity

the transportation method ♦ ♦ ♦

Finds amount to be shipped from several  sources to several destinations Used primarily for industrial locations Type of linear programming model -Objective: Minimize total production & shipping costs -Constraints *Production capacity at source (factory) *Demand requirement at destination

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