Beruflich Dokumente
Kultur Dokumente
Principles of
Operations Management
Selecting the Location
Chapter 6
6-1
Learning Objectives
1997 Prentice-Hall, Inc.
6-2
Thinking Challenge
1997 Prentice-Hall, Inc.
6-3
Alone
Group Class
Cost focus
Industrial
Location Strategies
Location is a major
cost factor
6-4
Revenue focus
Service
Location Strategies
Location is a major
revenue factor
Affects amount of
customer contact
Affects volume of
business
1995 Corel Corp.
6-5
Location Decisions
1997 Prentice-Hall, Inc.
Long-term decisions
Difficult to reverse
Transportation cost
As much as 25% of product price
Other costs: Taxes, wages, rent etc.
Government
Market location
Labor
Productivity
Cost
Infrastructure
1995 Corel Corp.
Exchange rate
6-7
Labor Productivity
1997 Prentice-Hall, Inc.
Labor productivity
important
Germany
27.37
Japan
21.38
U.S.
17.10
Hong Kong
4.79
Mexico
2.57
Factors Affecting
Region/Community
Corporate desires
Attractiveness
Labor
Utility costs
Govt incentives
Proximity to
customers & suppliers
Land/construction $$$
6-9
Factors Affecting
Site
Site size
Site cost
Transportation in/out
Proximity of
services
Environmental
impact
1995 Corel Corp.
6 - 10
Location Methods
1997 Prentice-Hall, Inc.
Factor weighting
method
Center of gravity
method
Transportation
model
1995 Corel Corp.
6 - 11
6 - 12
TOTAL
6 - 15
Denver
Wgt Econ Score Wgt
Score
(0-1) Score
Alone
Group Class
Thinking Challenge
Solution*
Phoenix
TOTAL
6 - 17
Santa Fe
6 - 18
6 - 19
X Coordinate
dix Wi
Cx i
Wi
i
Y Coordinate
diy Wi
Cy i
Wi
i
6 - 20
dix = x coordinate
of location i
Wi = Volume of
goods moved to
or from location i
diy = y coordinate
of location i
1995
Corel
Corp.
Columbia,
SC
Austin,
TX
Warehouse?
Lincoln, NE
90
Lincoln Store
(90,60)
2k demand
60
Austin Store
(90,10)
5k demand
30
Columbia Store
(150,30)
3k demand
0
0
6 - 22
30
60
90
120
150
1995
Corel
Corp.
Thinking Challenge
1997 Prentice-Hall, Inc.
Alone
Group Class
Conclusion
1997 Prentice-Hall, Inc.
6 - 25