Supply Chain Location (11)

Question 1

Facility Location

Answer 1

the process of determining geographic sites for a firm’s operations

Question 2

Distribution Center

Answer 2

a warehouse or stocking point where goods are stored for subsequent distribution to manufacturers, wholesalers, retailers, and customers.

Question 3

Factors Affecting Location Decisions

Answer 3

1. the factor must be sensitive to location

2. factor must have a high impact on the company’s ability to meet its goals

Question 4

DOMINANT VS. SECONDARY FACTRS

Answer 4

dominant- derived from competitive priorities (cost, quality, time, and flexibility)
secondary- important, but management may downplay or even ignore some of these if other factors are more important.

Question 5

dominant factors in Manufacturing

Answer 5

1. favorable labor climate
2. proximity to markets
3. impact on environment
4. quality of life
5. proximity to suppliers and resources.
6. proximity to the parent company’s facilities
7. utilities, taxes, and real estate costs.
8. other factors

Question 6

Dominant Factors in Services

Answer 6

1. proximity to customers
2. transportation costs and proximity to markets
3. location of competitors
4. site specific factors

Question 7

critical mass

Answer 7

a situation whereby several competing firms clustered in one location attract more customers than the total number who would shop at the same stores at scattered locations

Question 8

Geographical Information System (GIS)

Answer 8

a system of computer software, hardware and data that the firm’s personnel can use to manipulate, analyze and present information relevant to a location decision.
used to 1. store databases 2. display maps. 3. create models that can take info from existing datasets, apply analytic functions, and write results into newly derived datasets.

Question 9

Comparing Several Sites

Answer 9

process of selecting a new facility location involves a series of steps:

1. identify the important location factors and categorize them as D or S
2. consider alternative regions, then narrow the choices to alternative comm. and finally to specific sites
3. collect data on teh alternatives
4. analyze the data collected
5. bring the qualitative factors pertaining to each site into the evaluation.

Question 10

Load- distance method

Answer 10

a mathematical model used to evaluate locations based on proximity factors.

Question 11

break even analysis

Answer 11

FC + VC= FC + VC

or Fc + VC= revenue