Beruflich Dokumente
Kultur Dokumente
Learning Objectives
1. Able to define facility location. 2. Identify objectives and importance of location
decision. 3. Describe factors Influencing Location Decisions: - Tangible Factors - Intangible Factors 4. Understand Plant Location Models: - Factor Rating Technique - Break-Even Point Analysis - Location Break-Even Point Analysis
Introduction
Location has a major impact on the overall risk and profit of the
company. Firms throughout the world are using the concepts and techniques of this chapter to address the location decision because location greatly affects both fixed and variable costs.
Company need location that can provide abundant, skills, productive
The location decision often depends on the type of business The objective of location strategy is to maximize the benefit of location
to the firm.
2.
3.
4.
Improve customer service by locating near customers - service providers like fast food restaurants locate near one another to draw customers to one location, while retail stores to attract a higher volume of customer. Better working environment for workers - management should consider employees interest as well. Location of the factories or outlets should have an access to all amenities such as housing, education, shopping and other service. To balance costs through choosing the best location Reduce investment costs & maximize the benefit of location.
6.
7. 8.
Tangible/Quantitative/Economic Factors
1. Facility costs (Land/Building/Office).
Intangible/Qualitative Factors
1. Worker education, skills & attitude. 2. Local & government policies. 3. Attractiveness of location. 4. Quality of life issues.
5. Economic/Political sentiment.
6. Community acceptance/feelings.
Level of education
Political and legal aspects Social and cultural aspects Economic factors
0.1
0.4
3
2
4
3
2
2
0.1
0.2
4
3
4
3
3
2
Weight
Total WS
=3.6
Total WS Ranking
2.9 2
3.6 3
2.1 1
Based on the total weighted scores, Malaysia is chosen as the prefered location because of its highest score.
Vietnam
30,000 150,000
180,000
60,000 90,000
150,000
110,000 50,000
160,000
Ranking
Weigh t
2
Intangible
2x1=2
3x1=3
1x1=1
Total WS
=4
=9
=5
Ranking
BEP in RM = BEP(unit) x SP
a) Calculate the breakeven point. BEP (unit) = RM40,000 (RM40 RM20) = 2,000 units
b) Determine the total revenue required to breakeven. BEP(RM) = 2,000 units x RM40 = RM80,000
c) Calculate the profit if sales volume is 3000 units. Sales Volume = FC + Profit CM 3,000 units = RM40,000 + Profit RM20 Profit = (RM20 x 3000 units) -RM40000 = RM20,000
d) Determine the production volume if the firm's target profit is RM40,000 per month. Sales Volume = FC + Profit CM Sales Volume = RM40,000 + RM40,000 RM20 Sales Volume = RM80,000 RM20 = 4,000 units
CM (new) = RM20 + 1.00 = RM21 BEP (unit) = RM40,000 RM21 = 1,904.76 @ 1,905 units BEP(RM) = 1,905 units x RM40 = RM76,200
(a) BEP (unit) = 2,000 units (b) BEP(RM) = RM80,000 (c) Profit = RM20,000 (3,000 units) (d) Sales = 4,000 units
Loss
0
(a) BEP = 2,000