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PRODUCTION AND OPERATIONS MANAGEMENT

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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  1. PRODUCTION AND OPERATIONS MANAGEMENT Ch. 9: LocationStrategies SUMMARY POM - J. Galván

  2. 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

  3. 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

  4. 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

  5. Final Thought POM - J. Galván

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