Location Planning Flashcards
What is location planning?
to find the best geographical location for an organisations activities
Why a new location?
New plant
New branch for existing plat
Relocating of existing plant
What factors to consider when choosing a location for a factory?
Nearness Market - economies of scale, transportation
Nearness to raw materials - supplier location
personnel - skills available, quality of life
local conditions - cost of land, waste etc.
What is a preference matrix
system to select best location using a matrix scoring method
What is break even analysis?
Plotting cost against quantity produced and sold graph to find the point at which loss = profit i.e break-even. This is carried out at each location.
What is load-distance model?
Finding the best location through considering distances between facility and customers/suppliers. Multiply estimated load by distance and sum values.