Finals(Location) Flashcards
Options in location planning (4)
shut down at one location and move to another
add new locations while retaining existing ones
do nothing
expand an existing facility
Need for Location Decisions(4)
marketing strategy
cost of doing business
growth
depletion of resources
nature of location decisions(3)
strategic importance of LD
objectives of LD
location options
medical, fire
community- services
strategic importance of LD (3)
long term commitments/cost
impact on investments, revenues and ops
supply chains
developing location alternatives (location decision factors) (4)
regional factors
community considerations
site related factors
multiple plant strategies
regional factors (4)
raw materials
markets
labor factors
climate and taxes
objectives of LD (3)
profit potential
no single location may be better than others
identify several locations from which to choose
why firms locate near at the source of materials(3)
necessity
perishability
transportation costs
location of markets:
profit oriented and non profit
profit- part of their competitive strategy
non profit- to provide ready access from all directions
labor factors (3)
labor costs
skills of potential employees
worker attitudes
work attitudes, compensation law, unemployment
regional. labor
community considerations (7)
qualit of life services attitudes taxes utilities environmental regulations developer support
site related factors (4)
land
transportation
environmental
legal
making location decisions (5)
- decide on the criteria
- identi the important factors
- develop locaton alternatives
- evaluate alternatives
- make selection
comparison: revenue focused
s/r
D or R: legal
r
proximity, distribution costs, target market, target trade, restrictions
regional- location of market
computer-based tool for collecting, storing, retrieving and displaying demographic data on maps
geographic information system
school, churches, recreation, shopping, cost of living
community- quality of life
zoning restrictions
site- envi/legal
comparison: labor costs, availability and skills
m
multiple plant manufacturing strategies (3)
product plant strategy
market area plant strategy
process plant strategy
set of requirments in product plant strategies
labor
materials
equipment
the plant locations may either be widely scattered or clustered relatively close to kne another
product plant strat
operating costs of this strategy are often times higher but savings on shipping costs can be made
maket area plant strat
plants are designed to serve a particular geo segment
MAPS
plants are concentrate in different aspects of process
process plant strat
D or R: import restrictions
d
degree of development required, drainage, parking, room for expansion
site related- land
product plant strategy (3)
product lines are produced in separate plants
decentralized approach
focusing in narrow set of requirements
usedul when shipping costs are high
MAPS
D or R: transpo cost
d
used to minimize cost associated with distributing goods
transpo model
best suited to products that have numerous components
process plant strat
D or R: unskilled labor
d
comparison: transportation modes, costs
m
proximity, modes and cost of transportation, quantity available
regional- location or raw materials
D or R: cultural
r
rewuired centralized coordination of decisions
maps
focusing on narrow set od requirements
prod plant strat
comparison: cost focused
manufacturing
comparison: customer access/ parking
service/retail
comparison:building/leasing costs
m
access roads, rail spurs, air freight
site- transportation
product lines are produced un separate plants
product plant strat
comparison: competition
s/r
comparison: energy availability, costs
m
individual plants can produce either most or all of the company’s products
market area plant
D or R: political
r
comparison: demographics; age, income
s/r
services and retail locations (7)
profit or revenue focused
concerned with demog
traffic volume and conevenience is important
prefer location that are near with other retailers or similar service providers
good transpo and parking faci
custmer safety and security
global locations: facilitating factors (2)
trade agreements
technology
barriers with international trade such as tarrifs have been reduced by
trade agreements
Benefits of globalization (4)
markets
cost savings
legal and regulatory
financial
coordinate system is overlaid on the map
center of gravity
potential cost savings: globalization (4)
tranpo cost
labor cost
raw material cost
taxes
D or R: econmomic instability
r
comparison: population/drawing area
s/r
disadvantages of globalization(5)
transpo cost security cost unskilled labor import restrictions criticism
risks of globalization (5)
terrorism economic stability legal cultural political
decentralized approach
product plant start
locating distribution center that minimizes distrib cost
center of gravity method
D or R: terrorism
r
D or R: security cost
d
comparison: population/drawing area
s/r
used to compare alternatives in terms of their impact in total distribution costs
transportation model (supplement)
D or R: criticism
d
evaluating location alternatives (4)
locational cpv analysis
transportation model
factor rating
center of gravity method
technique for evaluating location choices in economic terms
loc cpv
comparison: traffic volumes, patterns
s/r
steps in locational cpv analysis (3)
- determine the FC and VC associated with each location alt
- plot the total-cost lines for all location alt on the same graph
- determine which location will have the lowest total cost for the expected level of output
special purpose algorithm used to determine the minimum transpo cost that would result
transportation model
general apporach to evaluatinf locations that includes quantitative and qualitative
factor rating
used to determine how to allocate the supplies available
transpo model
D or R: unskilled labor
d
treats distribution cost as linear function if the distance and quantity equipped
center of gravity
used to analyze each configurations considered and receals the minimum costs each would provide
transpo model
useful for evaluating given alternative and comparing alternative
factor rating
