Ch 8

Operations Management

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Unformatted text preview: 8-1Chapter 8Location Planning and Analysis8-2The Need for Location Decisions• Location decisions arise for a variety of reasons:1. As part of a marketing strategy to expand markets2. 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 advantage8-3Location Decision: General ProcedureStep 1. Decide on the criteria to use for evaluating location alternativesStep 2. Identify important factors, such as location of markets or raw materialsStep 3. Develop location alternativesa.Identify the country or countries for locationb.Identify the general region for locationc. Identify a small number of community alternativesd.Identify the site alternatives among the community alternativesStep 4. Evaluate the alternatives and make a decision8-4Factors That Affect Location Decisions...
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Ch 8 - 8-1Chapter 8Location Planning and Analysis8-2The...

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