Why facility location is important

In order for a successful relocation or expansion decision to be made, these factors should be ranked and weighted in accordance to the companies long term goal in order to gain a competitive advantage and maintain high customer service levels.

Get Access. Satisfactory Essays. HRM Words 2 Pages. Read More. Powerful Essays. Talent Retention. Good Essays. Challenges faced with Make-or-Buy decisions. Vision, Mission, and Strategic Planning.

Leadership Words 4 Pages. Better Essays. Major Theories, Frameworks, Techniques, and Applications. Related Topics. Economics Labor. In extended use: the workers employed at a business, institution, or factory. The seven factors affecting a location decision in operations management are facilities , competition, logistics, labor, community and site, political risk and incentives, according to Reference for Business. Facility layout is an arrangement of different aspects of manufacturing in an appropriate manner as to achieve desired production results.

Facility layout considers available space, final product, safety of users and facility and convenience of operations. They're 7 factors that affect the location of any factory. These 7 factors are: Proximity of Raw Materials. Location of Markets. Labour Supply. Political Factors. Network Facilities means all of the Company's and the Company Subsidiaries' material network facilities including, cable, wires, conduits, switches, and other equipment and facilities and related material operating support systems, network operations centers, and land and buildings.

Location analysis is a technique for discovering, assessing and specifying the optimal placement of an organization's people, information, activities, and materials. Location models are key in performing location analysis by providing a well-documented common vision of current and desired location arrangements.

A fixed - position layout is where the product stays stationary while workers come to the product site to build it. Fixed - position layouts are ideal for products that are large, heavy, or too fragile to move.

A properly planned plant layout aims at achieving the following objectives: To achieve economies in handling of raw materials, work in- progress and finished goods. To reduce the quantum of work-in-progress. To have most effective and optimum utilisation of available floor space. Why is facility location important? Category: business and finance manufacturing industry.

Importance of Facility Location. All of the above are managerial choices. General Information Systems B. Great Information Systems C. Geographic Information Systems D. General Institutions E. Location B. Zoning C. Transportation D. None of the Above E. Locational cost-profit-volume analysis B. Factor ratings C. Center of gravity method D. Transportation model E. A general approach to evaluating locations that include qualitative and quantitative inputs. A way to evaluate rating of geographic area C.

A general approach to evaluating locations that include regional inputs. A way of being capable of handling a wide range of different products. Location cost-pofit-volume analysis B. Method for finding balance between company culture and geographic culture.

Method that compares costs to benefits D. Location of raw materials or supplies B. Quality of life C. Location of markets D. Age B. Incomes C. Quality of life D. Type of employment E. Type of housing. Transportation costs B. Security costs C. Unskilled labor D. Import restrictions E. Necessity B. Perishability C.

Transportation costs D. Processing E. The transportation model B. Factor rating C. The center of gravity method D. Geographic information system. Which of these is a computer-based tool for collecting, storing, retrieving, and displaying demographic data on maps? Geographic Data System B. Geographic Information System C. Demographic Data System D. CAM E. Which is a major consideration when choosing to operate in a region? Considering global expansion, decision makers need to be absolutely clear on the benefits and risks and the likelihood of their occurrences when deciding upon identifying: A.

A dominant factor that influences the location decision of a manufacturing firm is: A. Climate changes B. Location to competitors C. Proximity to markets D. Transportation cost E. Which of the following is Not a primary consideration when identifying a site for operations?

Land B. Transportation C. Zoning D. Future expansion E. All of the Above. When using the Center of Gravity Method, what are the two differing variables for equal and unequal quantities shipped, respectively?

Which location alternative technique involves viewing the problem in economic terms? Factor Rating b. CVP c. GIS d. Center of Gravity e. Transportation Model. When considering foreign locations, crime, and the threat of terrorism fall under which category? Safety b. Cultural Differences c. Market d. Financial e. Customer Preferences. When using the factor rating method of location alternative evaluation, which of the following could be considered relevant factors?

Location of market b. Landfills and power plants are also often located relatively far from major population centers. But there are other viewpoints regarding the factors affecting the selection of plant location. It depends greatly on the type of business you operate and how you intend to use the facility. Dollar General had a few simple strategies when considering locations for its stores, as well as the warehouses that serve those locations.

Cal Turner Jr. The concept conforms to the location. We will take almost any building and make it fit. But the Turners did, indeed, have some specific requirements in mind when they created their location factor definition. Community, then, was key to Dollar General's choice of store and warehouse locations. The company, according to Cal Jr. So when you are considering your next facilities location, consider what factors are most important to your business.

If you operate a landfill or power plant, the site might well be important to you — you'll want a location that can easily house your type of business, but one that is not too close to a populous community.

As Caliper Corp. But if you are operating a business that depends on a specific market segment, such as Dollar General's rural and underserved population, you may want a location situated in the middle of, or near, that community's population center. When considering factors affecting selection of plant location or business location, demographics need to be at or near the top of your list.

That's another way of saying the community your business serves is a key factor to consider. As Entrepreneur. Consider who your customers are and how important their proximity to your location is.