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Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 7S

Chapter 7 supplement, facility location models. This chapter includes contents: Explain the major categories of facilities and the factors important in facility location; explain the general considerations of the facility site selection process for services and manufacturing facilities; use three quantitative tools for facility site selection;. | Lecture Operations management: Creating value along the supply chain (Canadian edition) - Chapter 7S OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 7 Supplement Facility Location Models Learning Objectives Explain the major categories of facilities and the factors important in facility location. Explain the general considerations of the facility site selection process for services and manufacturing facilities. Discuss the factors a company should consider when selecting facility site and explain how geographic information systems (GIS) can be used as a site selection tool. Use three quantitative tools for facility site selection. Copyright 2014 John Wiley & Supplement 7-2 Lecture Outline Types of Facilities Site Selection: Where to Locate Site Selection: Factors to Consider Location Analysis Techniques Copyright 2014 John Wiley & Supplement 7-3 Types of Facilities Heavy-manufacturing facilities large, require a lot of space, and are expensive Light-industry facilities smaller, cleaner plants and usually less costly Retail and service facilities smallest and least costly Copyright 2014 John Wiley & Supplement 7-4 Factors in Heavy Manufacturing Location Construction costs Land costs Raw material & finished goods shipment modes Proximity to raw materials Utilities Means of waste disposal Labour availability Copyright 2014 John Wiley & Supplement 7-5 Factors in Light Industry Location Land costs Transportation costs Proximity to markets depending on delivery requirements including frequency of delivery required by customer Copyright 2014 John Wiley & Supplement 7-6 Factors in Retail Location Proximity to customers Location is everything Copyright 2014 John Wiley & Supplement 7-7 Site .