1. From my point of view I can say that convenience and comfort it is to same.

I think
that we can replace comfort by availability. Availability of: communication( roads),
necessary resource as a water,energy, system of communication etc. We can add one
more important thing, it is a ‘outlet’ that means how many people will be coming on
the metches-it is depends on localization and eventually costs of transport.

2.

First option:
Fixed cost= 1mln $
Variable cost 1$ per attendee
Annual cost for an expected volume of 375 000= 375 000 + 1000000= 1 375 000$

Second option:
Fixed cost= 5 mln $
Variable cost 2$ per attendee
Annual cost for an expected volume of 375 000 = 5 000000$ + (2* 375 000)= 5 750 000$

Third option:
Fixed cost= 1 mln $ per year
Variable cost 10$ per each of 15 000 students tickets sold for each game
TVC= 10*15000*5
---------------- = 2$ per attendee
375 000
Annual cost for expected volume of 375 000 = 1 mln + 2*375 000= 1750 000

Forecasts show that numbers of attendee will increase to 75 000 per game( we have 5 game
each season so 75 000* 5= 375 000 per year)
Chart chows that for this number of attendee we have to choose first option
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3.

a) Old stadium can be reconstructed once and it can exist for next 30 years. The price is not so
expensive as in other options. The school has as mach money as they need for reconstruction
so they don’t need to take a credit. Secondly the localization is not change so the students
won’t be go by busses to the matches. Next, we can spend more money for more building
teams and than we are sure that the stadion will be fixed on time. Every of groups told that the
prices conected with stadiums are lowest in the Old stadion.

b) New stadion will be most representativ in this case. Will be comfortable and will be have a
lot of new solutions. Will be build near the city, what can reduce level of traffic jam before
the matches and can influance on safety and noice level in the city. New stadium it is long
term investicion and can get employement a many peopole as well during the building and of
course during the existing.

c) The third option had definite advantages from the perspective of many, if not most, of the
fans who attended the games. A large number already lived in the Dallas—Fort Worth area
and would be spared the long commute and horrible traffic jams that always seemed to occur
in Stephenville on game days. While the actual noted price of $200,000 per game seemed
high on the surface, the $1 million per season (there are five home games a year) was a drop
in the bucket compared to the other options.What is more, supporters, students and stuff are
sure that their team will be play in next season. Moreover every groups think that the comfort
is rally good in Dallas stadium.

Provide a complete list of reasons for not selecting each of the three sites.

a)
-high cost of modernization
-high risk that the modernization take long time and it will no be ready to next season

b)
- expensiv investicion( credit)
- we don’t know if in the future we will be need so big stadium
- it will be out of the city so we need make a good means of transport
- long time of building stadium and all infrastructure connected with stadium

c)
- far away from campus
-expensiv price for each match
- lack their own stadium

4.

I recommended location A that mean the old stadium should be reconstruceted and should be
bigger and should have new facilities. My justyfication is based on forecasts.Stadium after the
reconstruction will improve necessary quantity of siting place. Stadium will be modern and
comfortable as a supporters want. The team will be feel freer playing at home at them own
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stadium. Nowadays we can not take into account only economics factors,we should think
about people, bacause they are really important too. The absence of the own stadium may be
the cause of failures in team competitions of Stephenvill, that means when the team don’t
have success the sponsors can turn away. In consequence, absence of sponsors and own
stadium, can make team decline to the lower leagues what can make absence of supporters.As
we can see it is chain reaction.

The proposal number 3 or the game for 10 years at the stadium Dallas won the largest
poparce from supporters as well as other groups and taking part in the poll. You can tell that
the fans are the most important of the match and it is for them to build a stadium with stands,
if they so overwhelmingly in favor of matches at the stadium Dallasów. Due to the
convenience of their money and time you tried to sign a contract for 10 years and see
situations. If everyone is happy with the extended a contract with the stadium in Dallas, or if
the benefit of another previously proposed options. For this moment, I don’t want build a new
stadium.

5.
Gardner used Factor Roating Method which contains of fallowing steps:
1. list relevant factors
2. assign importance weight to each factor (0-1)
3. develop scale for each factor (1-6)
4. score each location using factor scale
5. multiply scores by weights for each factor and total
6. select location weith maximum total score

The results are shown in the table below:

Students rating of location

Factors First Second Third

option option option
convenience 6 5 1
Guaranted 4 3 6
avaliaibility
Comfort 5 6 6

costs 6 3 5

National image 3 5 5

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 Booster’s ration of location

Factors First Second Third

option option option
convenience 3 3 6
Guaranted 5 4 6
avaliaibility
Comfort 4 5 6

costs 6 4 6

National image 4 4 5

College staff rotation of location

Factors First Second Third

option option option
convenience 5 4 3
Guaranted 6 4 6
avaliaibility
Comfort 4 6 5

costs 6 3 5

National image 5 5 4

Factor Weight for each factor

Concenience 0.5
Guranted 1
avaliability

Comfort 0.25

Costs 1

National 0.25
image

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When we multipling scores by weights for each factor we get:

First option 46.25

Second option 34.75
Third option 46.75

This method shows that we should rent the stadion from Dallas Cowboys. However
expending the existing stadion also seems to be a good idea.

6.

Besides the factor rating method and locational break –even analysis wchich was used in our
homework we know other methods as a:
center of gravity method

Finds location of single distribution center serving several destinations

- Used primarily for services
- Considers
- Location of existing destinations
- Example: Markets, retailers etc.
- Volume to be shipped
- Shipping distance (or cost)
- Shipping cost/unit/mile is constant
- Place existing locations on a coordinate grid
o Grid has arbitrary origin & scale
o Maintains relative distances
- Calculate X & Y coordinates for ‘center of gravity’
o Gives location of distribution center
o Minimizes transportation cost
Center of Gravity Method Equations

X Coordinate

∑ d ix Wi
Cx = i
∑ Wi
i

dix = x coordinate of location i

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 Wi =Volume of goods moved to or
from location i
diy = y coordinate of location i

Y Coordinate
∑ d iy Wi
Cy = i
∑ Wi
i

Coordinate Locations of Four Quain’s Department Stores and the Center of Gravity

the transportation method

♦ Finds amount to be shipped from several sources to several destinations

♦ Used primarily for industrial locations
♦ Type of linear programming model
-Objective: Minimize total production
& shipping costs
-Constraints
*Production capacity at source (factory)
*Demand requirement at destination