Chapter 9: Facility Location

Question 1

Facility Location

Answer 1

choosing the locations for distribution centers, warehouses, and production facilities for best logistical effectiveness and efficiency

Question 2

General Location factors

Answer 2

Cost, customer service expectations, location of customers or supply markets, taxes and incentives, transportation modes available, labor, trade patterns and agreements

Question 3

Manufacturing facility factors

Answer 3

Raw materials, component parts, labor, markets

Question 4

Weight-losing products

Answer 4

better to have located near its source

Question 5

weight-gaining products

Answer 5

better to have located near final market

Question 6

quality-of-life considerations

Answer 6

cost of living, educational opportunities, crime rates, employment opportunities, weather, cultural amenities

Question 7

locating in other countries

Answer 7

legal system, political stability, bureaucratic red tape, corruption, protectionism, nationalism, privatization, expropriation, treaties and trade agreements

Question 8

specialized location factors

Answer 8

zoning, unions, free trade zone, grid systems (center of gravity)

Question 9

free trade zone

Answer 9

foreign trade zone, export processing zone, special economic zone

Question 10

facility relocation

Answer 10

need a bigger facility, need to be careful in deciding new location, keep current workers up to date

Question 11

facility closure

Answer 11

no longer need facility operations, keep workers updated and give them a warning.