Operations management

Question 1

Explain why location is important

Answer 1

It can affect firm’s cost,porfits,efficient and market base

Question 2

Factors that affect the location decision of a manufacturing business

Answer 2

(i)Production method
(ii)Market
(iii)Raw material/component

Question 3

Factors that affect the location decision of a service sector firms

Answer 3

(i)Customer
(ii)Technology
(ii)Availability of labour

Question 4

Factors that affect the location decision of a retailing business

Answer 4

(i)Shopper
(ii)Nearby shop
(iii)Customer park availability

Question 5

Explain why business locate in different countries

Answer 5

(i)New market overseas
(ii)Cheaper or new material available
(iii)Lower rate of taxes and rent

Question 6

Explain the role of legal control on location decision

Answer 6

Government influence location decision
-To encourage business set up and expand in areas of high unemployment
-To discourage firms from setting in area that is overcrowded or renowned for natural beauty