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Ch 8

Operations Management

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8-1 Chapter 8 Location Planning and Analysis
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8-2 The Need for Location Decisions Location decisions arise for a variety of reasons: 1. As part of a marketing strategy to expand markets 2. When growth in demand cannot be satisfied by expanding existing facilities Location decisions are strategically important: Closely tied to a firm’s supply chain strategies Affect capacity and flexibility Affect fixed & variable costs (Ex. Transportation cost, taxes, wages, rent etc .) Entail a long-term commitment - difficult to reverse the decision Impact competitive advantage
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