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Lecture Operations management (11/e): Chapter 8 - William J. Stevenson
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Lecture Operations management (11/e): Chapter 8 - William J. Stevenson
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Chapter 8 entitled 'Location planning and analysis' deals with main reasons and explains why location decisions are important. Location decisions represent a key part of the strategic planning process of virtually every organization. This chapter examines locations analysis. It begins with a brief overview of the reason firms must make location decisions, the nature of these decisions, and a general procedure for developing and evaluating location alternatives. | Location Planning and Analysis McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: Identify some of the main reasons organizations need to make location decisions Explain why location decisions are important Discuss the options that are available for location decisions Give examples of the major factors that affect location decisions Outline the decision process for making these kinds of decisions Use the techniques presented to solve typical problems 8- Student Slides Location decisions arise for a variety of reasons: Addition of new facilities As part of a marketing strategy to expand markets Growth in demand that cannot be satisfied by expanding existing facilities Depletion of basic inputs requires relocation Shift in markets Cost of doing business at a particular location makes relocation attractive 8- Student Slides Location decisions are based on: Profit potential or cost and customer service Finding a number | Location Planning and Analysis McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to: Identify some of the main reasons organizations need to make location decisions Explain why location decisions are important Discuss the options that are available for location decisions Give examples of the major factors that affect location decisions Outline the decision process for making these kinds of decisions Use the techniques presented to solve typical problems 8- Student Slides Location decisions arise for a variety of reasons: Addition of new facilities As part of a marketing strategy to expand markets Growth in demand that cannot be satisfied by expanding existing facilities Depletion of basic inputs requires relocation Shift in markets Cost of doing business at a particular location makes relocation attractive 8- Student Slides Location decisions are based on: Profit potential or cost and customer service Finding a number of acceptable locations from which to choose Position in the supply chain End: accessibility, consumer demographics, traffic patterns, and local customs are important Middle: locate near suppliers or markets Beginning: locate near the source of raw materials Web-based retail organizations are effectively location independent 8- Student Slides Steps: Decide on the criteria to use for evaluating location alternatives Identify important factors, such as location of markets or raw materials Develop location alternatives Identify the country or countries for location Identify the general region for location Identify a small number of community alternatives Identify the site alternatives among the community alternatives Evaluate the alternatives and make a decision 8- Student Slides Factors relating to foreign locations Government Policies on foreign ownership of production facilities Local content requirements Import restrictions Currency restrictions Environment regulations Local
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