LocationAnalysisPart1(1,15)

LocationAnalysisPart1(1,15) - Location Analysis: Chapter...

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Location Analysis: Chapter 10; starting page 575 Location Models - Strategic decision when designing SCM
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Issues In Plant Location Size of the facility. Product lines. Process technology. Labor requirements. Utilities requirements Environmental issues. International considerations Tax Incentives. For a detailed discussion see chapter 1, pp 42-44
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Factors Influencing New Facility Location Decisions Labor costs Unionization Proximity Markets Proximity to supplies and resources Proximity to other facilities Quality of life in the region
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Location Analysis: Costs Fixed costs – independent of volume going through facility Variable costs – dependent on volume Transport costs – dependent on relative location of facility and customers (suppliers)
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Fixed costs Land Insurance Overhead Rental, mortgage and construction costs Equipment Taxes
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Variable costs Materials Direct labor Cost Productivity Energy Pollution control
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LocationAnalysisPart1(1,15) - Location Analysis: Chapter...

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