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Running head: LOCATION DECISIONS (PLG1)MGMT 420 Mgmnt of Production & OprtnsAssignment 6.3 - Location Decisions (PLG1)Embry-Riddle Aeronautical University
LOCATION DECISIONS (PLG1)Location DecisionsBefore a store or chain is open, having a good location is an important factor as it can determining the potential success. Companies throughout the world are addressing to the location decision as it can greatly affects both fixed and variable costs (Heizer, Render, & Munson., 2016). The locations of the business is establish according to the customer traffic, the higher the customer’s traffic, the higher chances the business may bloom (Suttle, R., 2019). A location with high customer traffic are located at an appealing area that is accessible for most transportation and mass transit. The location decision relies upon the kind of business. For industrial location decisions the methodology is typically limiting expenses, in spite of the fact that locations that foster development and imagination may also be critical. For retail and professional service organizations the strategy focuses on expanding income. As for warehouse location strategy, it is driven by a mix of expense and speed of conveyance (Heizer, Render, & Munson., 2016).McDonald’s location The company that I will be selecting is McDonalds. Everyone knows what is McDonalds, as it is well known for its burgers, fries and shakes. The reason why people will visit the fast food restaurant every day, partly because of the location where its convenience, product familiarity, competitive prices and the relative ease of finding a McDonald's location is almost everywhere (Thompson, M., n.d).McDonalds often source for location that is has the option to set up signs obvious from two major roads is viewed as ideal, just like a site close to a noteworthy convergence with traffic signals. Abundant parking spot is required and must meet all applicable local