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PRODUCTION AND OPERATIONS MANAGEMENT. Ch. 9: Location Strategies SUMMARY. BASIC POINTS. WHERE DO WE LOCATE PRODUCTION FACILITIES? Choices : Cost Revenues Factors to be taken into account Location evaluation methods : Factor-rating method Locational break- even analysis

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PRODUCTION AND OPERATIONS MANAGEMENT


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production and operations management

PRODUCTION AND OPERATIONS MANAGEMENT

Ch. 9: LocationStrategies

SUMMARY

POM - J. Galván

basic points
BASIC POINTS
  • WHERE DO WE LOCATE PRODUCTION FACILITIES?
    • Choices:
      • Cost
      • Revenues
    • Factorstobetakenintoaccount
    • Locationevaluationmethods:
      • Factor-rating method
      • Locational break-evenanalysis
      • Center of gravitymethod
      • Transportationmodel
    • The case of services

POM - J. Galván

questions
QUESTIONS
  • Examine the importance if location decisions. Which are the factors that influence these decisions?
  • How do facilities location decisions differ for service facilities and manufacturing plants?
  • Which of the following is NOT important in globalization
    • Product design
    • Culture and ethics
    • Facility location
    • Facility lay out
  • Which of the following is NOT a method for evaluating location alternatives,
    • The transportation model
    • Factor rating
    • Center of gravity method
    • Waiting line analysis

POM - J. Galván

questions ii
QUESTIONS (II)

Industrial locationdecisions are oftencostoriented and servicelocationdecisions are oftenrevenueoriented. Do youagree?, explainit

Ifwe use thebreakevenanalysisforlocationdecisions, pointoutwhattype of data do weneed

Can GeographicalInformationSystems (GIS) helpwithlocationdecisions? At whatlevel: country, region, city, environment?

In whattype of industriesmightthetransportationmethodbetheoptimumonefordecidingaboutlocations

POM - J. Galván

final thought
Final Thought

POM - J. Galván