By Ram Naresh Roy
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Extra info for A Modern Approach to Operations Management
Revenues and costs are both affected by facility location. A technique called breakeven analysis can be used to relate the costs and revenue to facility location. 5. 4 SOME OTHER FACILITY LOCATION MODELS Various quantitative models are used to help determine the best location of facilities. Sometimes, models are tailor-made to meet the specific circumstances of a unique problem. In New York City, for example, a mathematical model was developed to find the best locations of fire companies. There are some general models that can be adapted to the needs of a variety of systems.
1 • • • • • • PRINCIPLES OF PLANT LAYOUT Principle of overall integration (of man, materials, machine, supporting activities, etc) Principle of minimum distance between operations Principle of flow (arranging machines according to the sequence of operations) Principle of cubic space Principle of satisfaction and safety Principle of flexibility of rearrangement at a minimum cost. 4. Types of Basic Flow. Apart from this, one can combine this basic flows to get various combinations like (S + L) and (O + U), and so on.
B) & (c). 2, we see that the cost line for Nazereth and Debre Zeit cross each other. At this point of intersection the total cost for both will be equal. 2 that below 8000 units of production, Nazereth ensures a lower total cost than Debre Zeit, and vice-versa for production more than 8000 units. 2. Break Even Charts. Location of Production and Service Facilities 35 Similarly, the cost line for Debre Zeit and Addis Ababa cross each other. At this point of intersection the total cost for both will be equal.