1 / 22

Week 7A – Location Planning Chapter 8

Week 7A – Location Planning Chapter 8. Location decision factors, multi-plant strategies, cost-profit-volume analysis, GIS. Location Decision Factors. What are some factors that you think are important in making a location decision? ?????. Global Supply Chain Factors - 1.

arnon
Download Presentation

Week 7A – Location Planning Chapter 8

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Week 7A – Location PlanningChapter 8 Location decision factors, multi-plant strategies, cost-profit-volume analysis, GIS SJSU Bus. 140 - David Bentley

  2. Location Decision Factors • What are some factors that you think are important in making a location decision? ????? SJSU Bus. 140 - David Bentley

  3. Global Supply Chain Factors -1 • Government stability • Government regulations • Political and economic systems • Economic stability and growth • Exchange rates • Culture • Climate SJSU Bus. 140 - David Bentley

  4. Global Supply Chain Factors -2 • Export/import regulations, duties, tariffs • Raw material availability • Number and closeness of suppliers • Transportation/distribution systems • Labor force – cost, education, experience SJSU Bus. 140 - David Bentley

  5. Global Supply Chain Factors -3 • Technology availability • Technical expertise • Commercial travel • Cross-border trade regulations • Group trade agreements • Language SJSU Bus. 140 - David Bentley

  6. Regional Location Factors • Close to suppliers • Quick delivery • Close to raw materials • Major raw material • Close to customers • Tradeoffs with supplier proximity • Labor supply • Right skills, sufficient amount SJSU Bus. 140 - David Bentley

  7. Community Location Factors - 1 • Taxes • Property, income, sales • Development support • Infrastructure, loans, tax abatement • Regulations • Environmental: air, water, hazardous material • Other: building codes, restrictions, requirements • Utilities • Electricity, natural gas, water, phones, cable, satellite SJSU Bus. 140 - David Bentley

  8. Community Location Factors - 2 • Acceptance • Community support • Services • Police, fire, medical • Quality of life • Schools, recreation, COL, housing, shopping, transportation, religious institutions • Universities • Research facilities and higher education SJSU Bus. 140 - David Bentley

  9. Site Location Factors • Land • Purchase/lease costs • Geological, flood control • Transportation • Air, rail, highway • Environmental/legal • Toxic cleanups • Zoning regulations SJSU Bus. 140 - David Bentley

  10. Multiple Plant Strategies • Organize by product • Organize by market • Organize by process (or component) • Combination SJSU Bus. 140 - David Bentley

  11. Examples SJSU Bus. 140 - David Bentley

  12. Examples • Tin can manufacturer (peaches) • Refrigerator manufacturer • Automobile assembly • Car dealer • Fast food franchise (McDonald's) • Fast food franchise (Taco Bell) • Electronic test equipment manufacturer • MRP II Consultant SJSU Bus. 140 - David Bentley

  13. Tin Can Manufacturer • Customer = fruit canner SJSU Bus. 140 - David Bentley

  14. Refrigerator Manufacturer • Close to ???? SJSU Bus. 140 - David Bentley

  15. Automobile Assembly • Desired factors = ??? SJSU Bus. 140 - David Bentley

  16. Car Dealer • Think as a customer! SJSU Bus. 140 - David Bentley

  17. Fast Food Franchise • McDonalds SJSU Bus. 140 - David Bentley

  18. Fast Food Franchise • Taco Bell SJSU Bus. 140 - David Bentley

  19. Electronic Test Equipment Manufacturer • HP in the 1970s SJSU Bus. 140 - David Bentley

  20. MRP Consultant • In-house and on-site training and consulting SJSU Bus. 140 - David Bentley

  21. Cost-Profit-Volume Analysis • Mathematical or graphical • Procedure • Determine fixed & variable costs • Plot costs for all considered locations • Determine lowest total cost for expected output (volume) • Note that at different volumes other alternatives may be preferable SJSU Bus. 140 - David Bentley

  22. Geographic Information Systems • Increasing use due to data and software availability • May contain • Census data • Maps • Utilities and transportation hubs and routes • Places of interest • Examples of use SJSU Bus. 140 - David Bentley

More Related