Location Decisions Flashcards
Tangible costs
Readily identifiable costs that can be measured with some precision
Intangible costs
A category of location costs 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 method that instills objectivity into the process of identifying hard-to-evaluate costs
Locational break-even analysis
A cost-volume analysis to make 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 technique 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
Tangible costs
Readily identifiable costs that can be measured with some precision
