PRODUCTION AND OPERATIONS MANAGEMENT Ch 9 Location Strategies

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

BASIC POINTS n WHERE DO WE LOCATE PRODUCTION FACILITIES? • Choices: n n Cost Revenues • Factors to be taken into account • Location evaluation methods: n n Factor-rating method Locational break-even analysis Center of gravity method Transportation model • The case of services POM - J. Galván 2

n n 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 3

QUESTIONS (II) n n Industrial location decisions are often cost oriented and service location decisions are often revenue oriented. Do you agree? , explain it If we use the breakeven analysis for location decisions, point out what type of data do we need Can Geographical Information Systems (GIS) help with location decisions? At what level: country, region, city, environment? In what type of industries might the transportation method be the optimum one for deciding about locations POM - J. Galván 4

Final Thought POM - J. Galván 5