MGMT 3230 Lecture Notes - Quality Of Life, Variable Cost, Fixed Cost
30 Jun 2020
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Lscm 3403 chapter 8: location planning & analysis. Suppliers [near source of raw materials] middle [close to supplier or customer] retail. **identify the important factors gather info on appropriate sites eliminate some to obtain a short list site visits and meetings evaluate and make selection. Location of raw materials: necessity, perishability and transport costs, utilities. Location of markets: competition/convenience factor/perishability and transportation/need for closeness to customer. Labour factors: availability, skills, costs, attitudes, presence of unions. In some cases, services and retailers will want to locate near competitors to benefit from the concentration of potential customers. Mall stores and auto dealers are good examples. When businesses locate near similar businesses, it is referred to as clustering. Shortened delivery time and reduced delivery costs. Transportation model = consider costs of moving raw materials or finished goods. Factor rating = decision based on quantitative and qualitative inputs. Centre of gravity method = decision based on min. distribution costs.
