Assignment Problems
1. Suppose the revenue for a firm is $2,000,000. Its cost of goods sold is $85,000, and its average inventory value for the year is $50,000.
a) What is the firm's inventory turnover? Please include the formula, at least one step of calculation, and the correct answer for full credit.
b) What is the weeks-of-supply of the firm? Please include the formula, at least one step of calculation, and the correct answer for full credit.
2. A company has the following three candidate locations to evaluate:
|
Criterion
|
Weight
|
Location 1 (rating)
|
Location 2 (rating)
|
Location 3 (Rating)
|
|
Labor
|
0.2
|
4
|
4
|
5
|
|
Logistics system
|
0.3
|
3
|
4
|
3
|
|
Price
|
0.4
|
4
|
3
|
2
|
|
Management
|
0.1
|
5
|
4
|
3
|
The locations are rated based on a 1-5 scale, with 5 being the most satisfactory.
Which location should the company choose? Please provide the overall ratings of each location for full credit. For each overall rating, please provide at least one step of calculation.
3. The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.
|
City
|
Map coordinates (x, y)
|
Shipping load (in tons)
|
|
A
|
(5, 10)
|
20
|
|
B
|
(15, 10)
|
5
|
|
C
|
(4, 10)
|
15
|
|
D
|
(20, 5)
|
10
|
Using the Centroid method, at what map coordinates should the central hub be located? Please provide at least one step of calculation for each of the two coordinates of the centroid for full credit.