Chapter 8 Flashcards
1
Q
location costs
A
once in place difficult to reduce
2
Q
location decisions
A
long term decisions
decisions made infrequently
decision greatly affects both fixed and variable costs
3
Q
country decisions
A
- political, government
- cultural and economic issues
- location of markets
- labor talent
- resources
- exchange rates
4
Q
region decisions
A
- Labor availability and costs
- costs and availability of utilities
- environmental regulations
- government incentives and fiscal policies
- proximity to raw materials and customers
- land/construction costs
5
Q
site decisions:
A
- site size and cost
- transportation systems
- zoning restrictions
- environmental impact issues
6
Q
labor productivity (formula)
A
labor cost per day/productivity (units per day) = cost per unit
7
Q
costs
A
tangible: labor, taxes
intangible: education, public transportation
8
Q
factor-rating method
A
the process of selecting a location based on relevant factors
9
Q
factor rating method steps (6)
A
- list of relevant factors called key success factors
- assign weights
- develop scale
- score each location for each factor
- multiple score by weights for each factor for each location
- recommend the location with the highest point score
10
Q
factor rating formula
A
factor rating = weight x score
