33:799:301 Lecture Notes - Lecture 10: Facility Location Problem, Production Planning, Fixed Cost

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: A Taitt

Document Summary

Companies can locate anywhere in the world due to increased globalization, technology, transportation and open market. Facility location must be part of the firm"s supply chain strategy. Decisions involve: defining each facilities strategic role, determining the location for each facility, identifying the market(s) that each facility serves. Think these facility types as progressing from very basic to more complex and comprehensive from 1 through 6: offshore factory, source factory, server factory, contributor factory, outpost factory, lead factory. A factory set up for manufacturing or assembly in a country where labor and or raw materials are less expensive. Manufactures products at low cost with minimal technical and managerial resources. Import or acquire parts locally, then export to the manufacturer or directly to customers. Local management serves in a supervisory role not in making management decisions. Manufacturers products at low cost but with skilled workers and significant managerial resources. Example: hewlett-packard singapore factory produced calculators and keyboards.