OM 300 Lecture Notes - Lecture 8: Operations Management, Absenteeism, Factor 5

• School: University of Alabama
• Department: Operations Management
• Course: OM 300
• Professor: David Cooper

Document Summary

Location strategy: the objective of location strategy is to maximize the benefit of location to the firm. In other words: where is the best place to put our company, our restaurant, our warehouse, our office, etc. Increasingly global in nature: one of the most important decisions a firm makes, significant impact on fixed and variable costs, decisions made relatively infrequently, the objective is to maximize the benefit of location to the firm. Location and costs: location decisions based on low cost require careful consideration, once in place, location-related costs are fixed in place and difficult to reduce, determining optimal facility location is a good investment. Location and innovation: cost is not always the most important aspect of a strategic decision, four key attributes when strategy is based on innovation. An environment that encourages investment and local rivalry. Local presence of related and supporting industries.