Location Q3

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  1. Drivers for Location Planning?
    • 1. Viewed as a marketing/operations strategy
    • 2. Growth in demand
    • 3. Depletion of basic inputs
    • 4. A shift in the market
    • 5. Closts of doing business at a particular location
  2. Why are location decisions so important?
    They are long term committments with large costs.
  3. What are the objectives of Location Decisions?
    • 1. Profit Potential
    • 2. Balance cost and customer service
  4. What options are there for Location Decisions?
    • 1. Expand existing facilities
    • 2. Add new facilities
    • 3. Move
  5. Give two short-term reasons NOT to make a location decision?
    • 1. wage rates
    • 2. exchange rates
  6. Best approach to location decision?
    Consider how location impacts development of long-term capabilities.
  7. Six Step Process for Location Decision?
    • 1. Identify sources of value
    • 2. Identify capabilities needed (for a competitive advantage)
    • 3. Assess implications of location decision on development of capabilites (quality coils)
    • 4. Identify potential locations
    • 5. Evaluate locations
    • 6. Develop strategy for building network of locations
  8. Levels of location decisions?
    • 1. Continent/Country
    • 2. Region within a country
    • 3. Community / Locality
    • 4. Specific site
  9. Factors affecting Regional & Country Level Decision?
    • 1. Minimize transportation costs and provide acceptable service
    • 2. Proper supply of labor
    • 3. Wage rates
    • 4. Unions
    • 5. Regional taxes, regulations, trade barriers
    • 6. Political stability
  10. Factors affecting Community Level Location Decision?
    • 1. Availability of acceptable sites
    • 2. Local government attitudes
    • 3. Regulations, zoning, taxes, labor supply
    • 4. Tax incentives
    • 5. Community's attitude
    • 6. Amenities
  11. Factors affecting Site Level Decision?
    • 1. Size
    • 2. Adjoining land
    • 3. Zoning
    • 4. Drainage
    • 5. Soil
    • 6. Availability of water, sewers, utilities
    • 7. Development costs
  12. List the considerations of manufacturing/distribution for location planning?
    • 1. Cost focus
    • 2. Transportation modes/costs
    • 3. Energy availability costs
    • 4. Labor cost/availability/skills
    • 5. Building/leasing costs
  13. List the considerations Service/Retail for location planning?
    • 1. Revenue focus
    • 2. Demographics, age, income, etc.
    • 3. Population/drawing area
    • 4. Competition
    • 5. Traffic volume/patterns
    • 6. Customer access/parking
  14. Cost volume profit analysis in evaluating locations?
    • 1. Determine fixed and variable costs
    • 2. Plot total costs
    • 3. Determine lowest total costs
  15. Cost Volume Profit Analysis:
    Lower volumes are best with lower _______Cost
    Higher volumes are best wtih lower _________Cost
    • Fixed
    • Variable
  16. Three methods for evaluation Locations?
    • 1. Transportation Model
    • -Decision based on movement costs of raw materials of finished goods
    • 2. Factor Rating (most popular)
    • - Decision based on quantitative and qualitative inputs
    • 3. Center of Gravity Method
    • Decision based on minimum distribution costs
  17. Using the Factor Rating Method for Location decisions, the best alternative is the one with?
    Higher composit score

Card Set Information

Author:
NaomiChapman
ID:
24772
Filename:
Location Q3
Updated:
2010-06-24 17:38:58
Tags:
Location Planning Operations
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Description:
Location Planning Q3
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