1 / 10

Location Strategies Chapter 8

Location Strategies Chapter 8. M. Dohan. Agenda. Strategic Importance of Location. Freight contributes a lot to cost Raw Materials Finished Product Other factors Taxes Fuel Infrastructure Population Size activities. Location Decisions – Key Success Factors.

julie
Download Presentation

Location Strategies 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. Location StrategiesChapter 8 M. Dohan

  2. Agenda

  3. Strategic Importance of Location • Freight contributes a lot to cost • Raw Materials • Finished Product • Other factors • Taxes • Fuel • Infrastructure • Population • Size • activities

  4. Location Decisions – Key Success Factors • What are the Key Success Factors (KSFs) that are in play?

  5. Some Key Success Factors • Labour Productivity • Exchange Rates and Currency Risk • Costs • Political Risks, Values and Culture • Proximity to Markets • Proximity to Suppliers • Proximity to Competitors

  6. Location Evaluation Methods - Factor Rating • Purpose is to determine important factors in selecting a location, according to managers

  7. LocationalEvaluation Methods - Cost-Volume Analysis • Compares Locational alternatives • Determine F+V costs for each loc’n • Plot each loc’n on a graph • Select based on volume

  8. Location Evaluation Methods: Center-of-Gravity • Used to find location of a distribution center that will minimize costs • Only factors are distance and quantity, therefore not so useful.

  9. Location Evaluation Methods - Transportation Model • Objective – Find the pattern to ship from several supply areas to several demand areas, via several transport hubs, • Minimize cost

  10. Other Considerations • Service Location Strategy • Focus is on maximizing revenue, as opposed to minimizing cost • For services, cost tend to vary less for location • Geographic Information Systems

More Related