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Lecture06 (6 slides per page)

Lecture06 (6 slides per page) - BUS 105 Production and...

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BUS 105: Production and Operations Management Copyright: Mohsen ElHafsi 2010 BUS 105 BUS 105 Production and Operations Production and Operations Management Management Logistics and facility Logistics and facility Location Location BUS 105: Production and Operations Management 2 Need for Location Decisions Marketing Strategy Growth Depletion of Resources Cost of Doing Business BUS 105: Production and Operations Management 3 Nature of Location Decisions Strategic Importance Long term commitment/costs Impact on investments, revenues, and operations Supply chains Objectives Profit potential No single location may be better than others Identify several locations from which to choose Options Expand existing facilities Add new facilities Move BUS 105: Production and Operations Management 4 Making Location Decisions Decide on the criteria Identify the important factors Develop location alternatives Evaluate the alternatives Make selection BUS 105: Production and Operations Management 5 Location Decision Factors Regional Factors Site-related Factors Multiple Plant Strategies Community Considerations BUS 105: Production and Operations Management 6 Regional Factors Location of raw materials Location of markets Labor factors Climate and taxes
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BUS 105: Production and Operations Management Copyright: Mohsen ElHafsi 2010 BUS 105: Production and Operations Management 7 Community Considerations Quality of life Services Attitudes Taxes Environmental regulations Utilities Developer support BUS 105: Production and Operations Management 8 Site Related Factors Land Transportation Environmental Legal
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