MGIS 317 Lecture Notes - Business Process, Information Technology Management

• School: University of Calgary
• Department: Management Information Systems
• Course: MGIS 317
• Professor: Ronald Schlenker

Document Summary

Techniques used to assist in the location decision: profit estimates: By comparing the estimated revenues and cost of each location, site with highest annual potential profit may be identified. Limitation annual profit forecast alone have a limited use. This appraisal may be used to identify sites which have the highest potential return over a number of years. Payback method can be used to estimate the location most likely to return original investment as quickly as possible. Could be beneficial to any business with a capital shortage. Limitation: this requires estimation of cost and revenue for a period of years for each potential location. There"s a massive degree of inaccuracy and uncertainties in this form of quantitative decision making: break-even analysis: Method of comparing two or more possible locations. Calculates level of production that must be sold to reinvest equal total costs.