Finals(Location) Flashcards by Benjamin Sico

Options in location planning (4)

shut down at one location and move to another

add new locations while retaining existing ones

do nothing

expand an existing facility

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Need for Location Decisions(4)

marketing strategy
cost of doing business
growth
depletion of resources

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nature of location decisions(3)

strategic importance of LD

objectives of LD

location options

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medical, fire

community- services

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strategic importance of LD (3)

long term commitments/cost

impact on investments, revenues and ops

supply chains

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developing location alternatives (location decision factors) (4)

regional factors
community considerations
site related factors
multiple plant strategies

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regional factors (4)

raw materials
markets
labor factors
climate and taxes

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objectives of LD (3)

profit potential
no single location may be better than others
identify several locations from which to choose

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why firms locate near at the source of materials(3)

necessity
perishability
transportation costs

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location of markets:

profit oriented and non profit

profit- part of their competitive strategy

non profit- to provide ready access from all directions

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labor factors (3)

labor costs
skills of potential employees
worker attitudes

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work attitudes, compensation law, unemployment

regional. labor

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community considerations (7)

qualit of life
services
attitudes
taxes
utilities
environmental regulations
developer support

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site related factors (4)

land
transportation
environmental
legal

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making location decisions (5)

decide on the criteria
identi the important factors
develop locaton alternatives
evaluate alternatives
make selection

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comparison: revenue focused

s/r

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D or R: legal

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proximity, distribution costs, target market, target trade, restrictions

regional- location of market

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computer-based tool for collecting, storing, retrieving and displaying demographic data on maps

geographic information system

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school, churches, recreation, shopping, cost of living

community- quality of life

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zoning restrictions

site- envi/legal

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comparison: labor costs, availability and skills

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multiple plant manufacturing strategies (3)

product plant strategy
market area plant strategy
process plant strategy

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set of requirments in product plant strategies

labor
materials
equipment

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the plant locations may either be widely scattered or clustered relatively close to kne another

product plant strat

operating costs of this strategy are often times higher but savings on shipping costs can be made

maket area plant strat

plants are designed to serve a particular geo segment

MAPS

plants are concentrate in different aspects of process

process plant strat

D or R: import restrictions

degree of development required, drainage, parking, room for expansion

site related- land

product plant strategy (3)

product lines are produced in separate plants decentralized approach focusing in narrow set of requirements

usedul when shipping costs are high

MAPS

D or R: transpo cost

used to minimize cost associated with distributing goods

transpo model

best suited to products that have numerous components

process plant strat

D or R: unskilled labor

comparison: transportation modes, costs

proximity, modes and cost of transportation, quantity available

regional- location or raw materials

D or R: cultural

rewuired centralized coordination of decisions

maps

focusing on narrow set od requirements

prod plant strat

comparison: cost focused

manufacturing

comparison: customer access/ parking

service/retail

comparison:building/leasing costs

access roads, rail spurs, air freight

site- transportation

product lines are produced un separate plants

product plant strat

comparison: competition

s/r

comparison: energy availability, costs

individual plants can produce either most or all of the company's products

market area plant

D or R: political

comparison: demographics; age, income

s/r

services and retail locations (7)

profit or revenue focused concerned with demog traffic volume and conevenience is important prefer location that are near with other retailers or similar service providers good transpo and parking faci custmer safety and security

global locations: facilitating factors (2)

trade agreements technology

barriers with international trade such as tarrifs have been reduced by

trade agreements

Benefits of globalization (4)

markets cost savings legal and regulatory financial

coordinate system is overlaid on the map

center of gravity

potential cost savings: globalization (4)

tranpo cost labor cost raw material cost taxes

D or R: econmomic instability

comparison: population/drawing area

s/r

disadvantages of globalization(5)

``` transpo cost security cost unskilled labor import restrictions criticism ```

risks of globalization (5)

``` terrorism economic stability legal cultural political ```

decentralized approach

product plant start

locating distribution center that minimizes distrib cost

center of gravity method

D or R: terrorism

D or R: security cost

comparison: population/drawing area

s/r

used to compare alternatives in terms of their impact in total distribution costs

transportation model (supplement)

D or R: criticism

evaluating location alternatives (4)

locational cpv analysis transportation model factor rating center of gravity method

technique for evaluating location choices in economic terms

loc cpv

comparison: traffic volumes, patterns

s/r

steps in locational cpv analysis (3)

1. determine the FC and VC associated with each location alt 2. plot the total-cost lines for all location alt on the same graph 3. determine which location will have the lowest total cost for the expected level of output

special purpose algorithm used to determine the minimum transpo cost that would result

transportation model

general apporach to evaluatinf locations that includes quantitative and qualitative

factor rating

used to determine how to allocate the supplies available

transpo model

D or R: unskilled labor

treats distribution cost as linear function if the distance and quantity equipped

center of gravity

used to analyze each configurations considered and receals the minimum costs each would provide

transpo model

useful for evaluating given alternative and comparing alternative

factor rating

Finals(Location) Flashcards

(79 cards)