An example of a regional factor in location planning is the location of our markets (either existing or potential).
The lower cost of foreign labor is often offset by lower levels of productivity.
The center of gravity method is a location planning technique that determines a composite score from weighted factor evaluation.
One of the reasons for the importance of location decisions is its strategic importance to the supply chains.
Which of the following is the last step in the procedure for making location decisions?
request input regarding alternatives
develop location alternatives
evaluate alternatives and make a selection
determine the evaluation criteria
identify important factors
Which of the following is least important as a consideration for a firm at the beginning of a supply chain?
Access to productive labor
Access to transportation infrastructure
Access to end consumers
Proximity to customers
Access to resources
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?
For service and retail stores, a prime factor in location analysis is customer access.
As a result of the factor rating analysis, a manager may sometimes reject all of the alternatives under consideration when the composite scores are below the minimum threshold value.
Which of the following is not a location option that management can consider in location planning?
expand an existing facility
add a new location
relocate from one location to another
All are possible options.
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