COMMERCE 2OC3 Lecture Notes - Lecture 8: Factor 5, Computer Hardware, Absenteeism
16 Mar 2017
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Chapter 8 location strategies (both qualitative and quantitative) easy chapter, read through quickly. Central hub concept: enables services to more locations with fewer aircraft. Enables matching of aircraft flights with package loads. Reduce mishandling and delay in transit because there is total control of packages from pickup to delivery. The object is to maximize the benefit of location to the firm. Location and costs: location decisions based on low costs require careful consideration. Once in place, location-related costs are fixed in place and difficult to reduce. Determine optimal facility location is a good investment. Location and innovation: cost is not always the most important aspect of a strategic decision. 4 key attributes when strategy is based on innovation: (1) high-quality and specialized inputs. (2) an environment that encourages investment and local competition. (3) a sophisticated local market. (4) local presence of related and supporting industries. Factors that affect location decisions: long-term decision and made infrequently.
