ADM 3302 Chapter Notes - Chapter 11: California Wine, Facility Location Problem, Production Planning
8 Apr 2020
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Document Summary
Facility location affects the efficiency and effectiveness of supply chains & firm"s overall competitive advantage. Companies can locate anywhere in the world due to increased globalization, technology, faster transportation, improved communication & open markets. Location still matters- industry clusters show that innovation & competition are geographically concentrated. Silicon valley, wall street, the california wine region, Global location decisions involve location of the facility, defining its strategic role & identifying the markets it serves. Global location decisions should optimize the performance of the supply chain and be consistent with the firm"s competitive strategy. A firm competing on cost is likely to select a location that provides a cost advantage. A firm that competes on speed of delivery, such as the fedex corp. , uses the hub and spoke approach to determine location. To get the most out of foreign-based facilities, managers must treat these plants as having a strategic role to perform. Six strategic roles of a foreign facility.
