chapter 8 Flashcards
1
Q
what are some issues in Facility Locations ?
A
- expansion or contraction
- proximity to customers (products that increase in weight)
- proximity to suppliers (products that decrease in weight)
- business climate
- total costs
- exchange rates
- infrastructure
- quality of labour, labour productivity
- other facilities
- free trade zones
- political risk
- government barriers
- government incentives
- trading blocs
- environmental regulation
- attitudes of host community
- competitive advantage
2
Q
what are the 3 Plan Location Mrthods?
A
- factor rating
- minimax
- centre of gravity
3
Q
list the steps of the Factor Rating System
A
- identify the specific criteria or factors to be considered
- assign a weight to each factor
- select a common scale for scoring each factor
- score each potential location on each of the factors
- multiply each factor’s score by its weight
- sum the weighted scores and select the location with the highest score
4
Q
what is the use of the Minimax location method?
A
the objective is to minimize the maximum distance traveled (or the cost incurred) to any centre of customer location
5
Q
how do we solve a question with Minimax Location method?
A
scan each h row for the max distance. select the row with the smallest max
6
Q
what is the Center of Gravity Method used for and what does it involve?
A
- the centre of gravity method is used for locating single facilities that considers existing facilities, the distances between them, and the volumes of goods to be shipped between them
- this methodology involves formulas used to compute the coordinates of the two dimensional point that meets the distance and volume criteria stated above
