Data Tech Case Study

Data Tech Case Study

Determine whether Jeff should give greater priority to a smaller facility with possibility of expansion or more into a larger facility immediately.

Jeff should move towards larger facility as Moving into a large facility has a profitability of either $1,000,000 or $600,000, depending on whether demand turns out to be high or low. As there is a possibility that likelihood of demand being high is 0.70 and the likelihood of demand being low is 0.30And from the case I have analyzed that there is an expectation every day Data Tech receives packages of mail from corporate customers containing documents they want transferred to disc. Data Tech usually receives anywhere from 10,000 to 30,000 pieces of mail per day that need to be processed. The first step requires workers to unpack and sort the mail received. It is important to take risk as it has got the higher returns of around One million dollar. With the help of factor table Jeff can make decisions regarding its approach for going either for large facility or smaller facility, with the help of larger facility I think Jeff can have advantage and earn more profit, although risks are higher in this scenario, as proximity to airport is less and Data tech is close to business community (Heizer, J. H. 2001). The operations function of Data Tech seems deceptively simple. Every day Data Tech receives packages of mail from corporate customers containing documents they want transferred to disc. Data Tech usually receives anywhere from 10,000 to 30,000 pieces of mail per day that need to be processed. The first step requires workers to unpack and sort the mail received. Due to the simple operations function Jeff have chances that he can earn more profit.

Determine weights for the two (2) capacity factors based on your finding above and discuss how you concluded these were appropriate weights.

The two key capacity factor in this case is Facility with Excess capacity and Facility with Potential for Expansion I think these are the two key factors which may help Jeff in expanding his business capacity of Data Tech. As there is full potential for capacity expansion, from the identified weight, in case Jeff has narrowed down his search, If Jeff achieves the factor two of its potential capacity it will help in expanding its business. A factor in case that is particularly troubling for Jeff is the issue of capacity (Klassen, R. D. 2006). Two of the locations he is considering are larger than he currently needs and offer excess growth capacity.

Once you have selected the factors for the two (2) capacity alternatives, use factor rating to select a new location for Data Tech.

Factor

Factor Weight

Factor Score at Each Location

Factor 1

Factor 2

Factor 3

 

 

#1

#2

#3

 

 

 

Proximity to Airport

20

3

4

4

60

80

80

Proximity to Postal Service

30

4

2

5

120

60

150

Facility with Excess capacity

10

4

5

0

40

50

0

Facility with Potential for Expansion

20

0

1

5

0

20

100

Close to Business Community

10

5

4

4

50

40

40

Close to Pleasant Environment

10

3

4

4

30

40

40

Total

100

19

20

22

300

290

410

From the above table a factor rating can be analyzed, as total of these factor helps in making the appropriate rating. In this case the factor-1 is ...