University:
Cameron University
Course:
MGMT 3613 | Operations Management
Academic year:

2024
Views:

385

Pages:

1
Author:

maselarmwpa

MGMT 3613 | Operations Management Chapter 8 Notes 1. List some of the major reasons organizations need to make location decisions a. Strategic Importance of Location Decision i. (First Reason) Entail a long-term commitment, which makes mistakes difficult to overcome. ii. (Another Reason) Locations Decision often has an impact on investment requirements, operating costs and revenues, and operations. iii. (Another Reason) For both manufacturing and services; for the importance of location decision is their strategic importance supply chains. 2. Explain why location decisions are important a. Profit oriented organizations base their decision on profit potential, whereas nonprofit organizations strive to achieve a balance between cost and the level of customer services they provide. 3. Discuss the options that are available for location decisions a. Locations Options i. One is to expand on existing facility. ii. Another option is to add new location while retaining existing ones, as is done in many retail operations. iii. A third option is to shut down at one location and move to another. iv. Finally, organization have the option doing noting. 4. Describe some of the major factors that affect locations decisions a. Availability of an abundant energy and water supply and proximity to raw materials. b. Transportation costs can be a major factor. c. In service organizations, possible dominating factors are market related and include traffic patterns, convenience, and competitors’ locations, as well as proximity to the market. 5. Outline the decision process for making these kinds of decisions a. First- Decide on the criteria to use for evaluating location alternatives, such as increased revenues or community service. b. Second-Identify important factors, such as location of markets or raw materials. c. Third- Develop location alternatives. i. Identify the general region for a location ii. Identify a small number of community alternatives. iii. Identify site alternatives among the community alternatives d. Fourth- Evaluate the alternatives and make selection