Midterm - Facility Planning Chapter 04

Location Decision

play an important role on the overall organizational strategy to achieve higher

production and cost efficiency.

Location Decision

It can influence the company’s competitive advantage through its role in the supply chain

management.

Location Decision

can greatly impact the company’s production capacity and flexibility and operating costs and

revenues.

True

T or F Location decision affect the overall organizational strategy to achieve higher

production and cost efficiency.

False

T or F Location decision does not affect the overall organizational strategy or impact production and cost efficiency

True

T or F Location decision can increase production capacity and operating costs

False

T or F Location decisions have no significant impact on the company’s production capacity, flexibility, operating costs, or revenues

True

T or F Location Decision can also influence the company’s competitive

advantage through its role on supply chain

management.

False

T or F Location decision stick through its independent strategy and does not enter any market competition

Start & Raw materials

if the company is at the _______ of the supply chain it is located near the source of the _________

False

T or F if the supply chain is at the start then it means it is often located near the source of raw materials, market and suppliers

False

T or F if the company is at the middle of the supply chain it is usually located near the main source of the material where supplier is also located and the market

Middle & near market

If the company is located at the ______ of the supply

chain, it is usually located near the suppliers or _______

Centralized Distibution Strategy

it yields scale economies and a more controlled distribution

Decentralized Distribution Strategy

A strategy that is more responsive to local needs

False

Decentralize strategy is more controlled when it comes to the distribution flow and centralized strategy is more responsive to the local needs and market

Specific Knowledge

Knowing the company’s position in the supply chain is an important

consideration because it entails knowing ________ about the

number and location of prospective suppliers and other production

facilities, warehouses, and distribution centers in the area.

True

T or F

Knowing the company’s position in the supply chain is an important

consideration because it entails knowing specific knowledge about the

number and location of prospective suppliers and other production

facilities, warehouses, and distribution centers in the area.

False

T or F

part of the location decision, choosing the best supply chain entails specific information and knowledge about the market and does also analyze the population market need for better profit and revenue

False

T or F

The only reason why company choosing location decision is just to increase profit and improve their market to other industries and not the associated costs

True

T or F

Location decision is commonly based on associated costs of the market and other factors

False

T or F

As mention on location decision that most of the company is located near the supplier and market. With that organization always choose the best supplier or location that benefit them rather than finding several market

True

True or false,

most organizations do not set out with the intention of

identifying the one best location; instead, they hope to find several

acceptable locations from which to choose from.

Global Location

Factor that is for large companies that want to increase dispersion of their operation and lower their production cost

1. Trade Agreement

2. Technology

Two facilitationg factors to consider in global location

Trade Agreement

it imposed to help facilitate free trade and reduce or eliminate barriers to international trade such as tariffs or quotas.

Technology

it advances in communication and information such as the use of electronic mails, fax, cellphones, and the internet in general have also been helpful in maintaining a

smoother trade relation.

True

True or false

Global Location means there are higher opportunities for expanding and services

True

T or F

One of the drawbacks of global location is the increase of costs in transportation of raw materials

True

Global Location is less restrictuve when it comes to the regulation governing production processes

1. Higher opportunity for expanding market and service

2. Avoid the impact of currency changes

3. Reduce the cost for transportation, labor and raw material

4. less restrictive regulation

5. Gain new idea for product and services

Benefits of global location

1. Low labor productivity may offset low labor costs

2. Possibility of higher transportation costs

3. International border may slow the shipment process

Disadvantage of Global Location

1. Political unrest may pose threats

2. Cultural Differences may be more real than apparent

3. Economic instability may cause inflation

Risk of Global Location

1. Language & Cultural Differences

2. Domestic personnel may resist relocating

3. Operational Tactics may not work in all countries

4. Managers may have to deal with corruption

Drawbacks of global location

1. Identifying Country

2. Region

3. Community

4. Site

General Procedure for location decision

1. Talent

2. Labor Costs

3. Energy Costs

3 factors where to locate manufacture facility

Product Plant Strategy

the product line is product in seperate plant
and it more scattered

Process Plant Strategy

Various plants is more concentrate on difference aspect and is usually had more additional shipping costs

Market Strategy

A strategy that serve a particular geographic segment and require centralized coordination

General Purpose Plant

A plant that is flexible and capable of handling range of product

General Purpose Plant

A strategy wherein can create a high learning opportunities

Service and retail location

This kind of location is rely on conveince to attract customer

Service and retail location

This location consider the customer access

True

T or F

Service and retail location is not located near the source of raw material

Service and Retail location

it is located near the center of the market