Fruit Centre Ice Cream Parlor is deciding where to locate a new facility. The annual fixed costs, initial fixed costs and variable costs for each site have been estimated as follows; Location Annual Fixed Costs (shs) Initial Fixed costs selling price (shs) Variable costs(shs) Namugongo 35,000 400,000 200/unit 200/unit Kireka 19,000 250,000 400/unit 45/unit Banda 15,000 200,000 600/unit 2500/unit Ntinda 95,000 170,000 100/unit 360/unit If demand is expected to be 2000 units, which location is best? and  Forecasting is a key component in operations management. Identify and describe any three methods of forecasting that you would recommend to a service industry.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Fruit Centre Ice Cream Parlor is deciding where to locate a new facility. The annual fixed costs, initial fixed costs and variable costs for each site have been estimated as follows;

Location

Annual Fixed Costs (shs)

Initial Fixed costs

selling price (shs)

Variable costs(shs)

Namugongo

35,000

400,000

200/unit

200/unit

Kireka

19,000

250,000

400/unit

45/unit

Banda

15,000

200,000

600/unit

2500/unit

Ntinda

95,000

170,000

100/unit

360/unit

  1. If demand is expected to be 2000 units, which location is best? and  Forecasting is a key component in operations management. Identify and describe any three methods of forecasting that you would recommend to a service industry.

 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Production Plant
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.