PROBLEM 2

TUTORIAL 3 – 05-10-2020
Mang Oleh Corp. is considering opening a branch store in Grand Indonesia, Jakarta;
OPERATIONS MANAGEMENT – BAHASA INGGRIS
CHAPTER 8 – Location Decisions Paris Van Java, Bandung; or Pondok Indah Mall, Jakarta for producing and selling high
quality odading. He has compiled fixed costs and variable costs as below.
Fixed cost Cost Per-unit ($)
PROBLEM 1 Location
per year ($) Material Variable Labor Overhead
PT. Ikan Hiu Makan Tomat Tbk., headquartered in Jakarta, must decide among three
sites for the construction of a hotel. The firm has selected the six factor listed below a Grand Indonesia 200,000 0.20 0.40 0.40

basis for evaluation and has assigned rating weights from 1 to 5 on each factor: Paris Van Java 180,000 0.25 0.75 0.75

Factor Factor Name Rating Weight Pondok Indah Mall 170,000 1,00 1,00 1,00

1 Proximity to landmarks 5
2 Power-source availability and cost 3 a. Draw the total cost lines of each location.
b. For what range (volume/year) would each location have the competitive
3 Workforce attitude and cost 4
advantage?
4 Distance from Headquarters 2
5 Community desirability 2
PROBLEM 3 (MID-TERM 2014)
6 Equipment suppliers in area 3
Matahari Department Store (IDX JK: LPPF) want to move their warehouse, they are
currently has 5 locations – A(30,35) ; B(55,25) ; C(20,35) ; D(47,50) ; E(35,25) for a
Management has rated each location for each factor on a 1- to 100-point basis.
merchandise store and being supplied out of an old warehouse in Kebon Jeruk. The
Factor North Jakarta East Jakarta South Jakarta
total number of merchandise shipped per month for all locations is 5000. Number of
1 100 80 80
merchandise shipped to A is 50 percent of total number of merchandise shipped per
2 80 70 90
month, location B and C received the same number of merchandise each month,
3 30 60 60
location D received as many as two times of the location B and location E received 50
4 10 80 60
percent of location D. Based on that information, what is the proper location to build
5 90 60 75
the new warehouse for Matahari Department Store?
6 50 60 75
Questions:
a. Which site will be recommended based on total weighted average?
PROBLEM 4 (UTS 2015) HOMEWORK
b. If East Jakarta’s score for proximity to landmarks was reset at 100, how would the
a. A highway contractor needs to locate a single supply point to provide road building
result change?
materials for four projects. The four projects, which are all approximately have the
 same scale, are located at the following coordinates. Coordinate units are in miles. Proximity to
7 5 3 4 4
X (East) Y (North) markets
Project A 50 10 Weather 6 2 5 5 4
Project B 15 60
Project C 40 60
Project D 30 20
Questions:
a. What is the center of gravity (COG) of the four projects? Draw the projects and the
COG in the Cartesian graph!
b. How do service facility location decisions differ from industrial location decisions
in terms of the techniques that are used to analyze them?

PROBLEM 5 HOMEWORK
Toni Kroos, an owner of Kroos Manufacturing, plans to expand the business by building
a new factory in Frankfurt, Germany. Determining the location for the new factory has
reduced its alternatives to four locations, namely A, B, C, and D. The table below shows
the results of Toni and the team’s observation regarding the assessment of the four
locations. They also have determined the weighting for each factor that is considered
as a key success factor. As a company consultant, you are asked to analyze the selection
of these locations with the factor-rating method.
Location’s Scores
Factors Weight
A B C D
Quality of labor 10 5 4 4 5
Construction
8 2 3 4 1
cost
Transportation
8 3 4 3 2
cost