Chap 8 Location Strategies Flashcards
Tangible cost
Readily identifiable cause that can be measured with some precision
Seven major factors that affect location decisions
Labor productivity Exchange rate and currency risk Costs Political risk, values, and culture Proximity to markets Proximity to suppliers Proximity to competitors (clustering)
Intangible costs
A category of location cost that cannot be easily quantified, such as quality of life and government
Clustering
The location of competing companies near each other, often because of a critical mass of information, talent, venture-capital, or natural resources.
Factor-rating Method
A location Maffett that and stills objectivity into the process of identifying hard to evaluate costs.
Locational cost-volume analysis
A method of making an economic comparison of location alternatives.
Center-of-gravity method
A mathematical technique used for finding the best location for a single distribution point that services several stores or areas.
Transportation model
A tech nique for solving a class of linear programming problems.
Geographic information system (GIS)
A system that stores and displays information that can be linked to a geographic location
