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MD254: e-Service Operations

Agenda. BackgroundLocation ConsiderationsEstimation of Geographic DemandGeographic Information SystemsFacility Location TechniquesBreaking the RulesSummary. Background. Background. Competitive Roles of Service Facility LocationFlexibility of the Location(s) The degree to which the service ca

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MD254: e-Service Operations

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    1. MD254: e-Service Operations Service Facility Location

    2. Agenda Background Location Considerations Estimation of Geographic Demand Geographic Information Systems Facility Location Techniques Breaking the Rules Summary

    3. Background

    4. Background Competitive Roles of Service Facility Location Flexibility of the Location(s) The degree to which the service can react to changing economic situations regional economic downturn demographic changes cultural changes Competitive Positioning by Holding Locations A prime location can be barrier to entry Holding (future) prime locations limits competitor ability to move into your territories

    5. Background Competitive Roles of Service Facility Location Demand Management Facilitated by Location Characteristics Service capacity available to offer is often fixed Hotels, airplanes, etc. Ability to control quantity, quality, and timing of demand Control demand by locating near a diverse set of market generators that supply continuous demands of many types Service “Focus” A “Cookie-cutter” approach to standardizing service, making service expansion easier Downside is that too many facilities may lead to cannibalization of existing sales by new locations

    6. Background Making Location Decisions Traditionally Intuition about a site Site availability Favorable leasing Modern Site availability Favorable leasing Quantitative analysis of site location relative to location of competitors’ sites and your existing sites

    7. Location Considerations

    8. Location Considerations Variables Entering into a Location Decision Model Geographic Representation Facility lies on a Network Facility lies on a Plane Distance is measured using a Metropolitan Metric (rectangular displacement, city blocks) Distance is measured using a Euclidean Metric (as the crow flies) Number of Facilities One facility Many facilities Service capacity Level of service Area served Criteria for Optimizing Your Service Locations Public Service Sector Private Service Sector Effect of Criteria on Location

    9. Location Considerations Geographic Representation

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