BUSI 2301 Lecture Notes - Legal Outsourcing

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Chapter 8: location planning and analysis: need for good location decisions. Location is a lt commitment difficult to change. Location impacts the supply of qualified labour and raw materials. Options: expand existing, add new, shut down & move, general procedure. Formal approach has the following steps: identify important search parameters and factors, develop location alternatives. Identify a number of acceptable community/site alternatives: evaluate the alt and make a selection, location decision factors. Community considerations: quality of life, services, attitudes, taxes, environmental regulations, developer support. Site-related factors: land, transpo, environmental, legal. Shortened delivery time and reduced delivery costs. Other: auto industry: big 3 us auto, toyota, honda, hi tech, computer comps, trigonix, microids, food mfgs: ferrero, evaluating location alternatives. Locational break even analysis: technique based on quantity to be produced. Transpo model: decision based on mvmt costs of raw materials or finished goods. Factor rating: based on quantitative and qualitative inputs. Centre of gravity: based on minimum distribution costs.

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