Location Planning Flashcards

1
Q

What is location planning?

A

to find the best geographical location for an organisations activities

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2
Q

Why a new location?

A

New plant
New branch for existing plat
Relocating of existing plant

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3
Q

What factors to consider when choosing a location for a factory?

A

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.

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4
Q

What is a preference matrix

A

system to select best location using a matrix scoring method

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5
Q

What is break even analysis?

A

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.

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6
Q

What is load-distance model?

A

Finding the best location through considering distances between facility and customers/suppliers. Multiply estimated load by distance and sum values.

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