SMG OM 323 Chapter ch.8: OM323Ch8

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OM323 Professor Kadets Chapter 8 February 6, 2017
Location Planning and Analysis
8.1
8.2 The Nature of Location Decisions
o Strategic Importance of Location Decisions
Location can impact capacity and flexibility
o Objectives of Location Decisions
o Supply Chain Considerations
o Location Options
expand an existing facility
add new locations while retaining
existing ones
shutdown at one location and move to
another
do nothing
8.3 Global Locations
outsourcing
Facilitating Factors: Made globalization attractive and feasible for
business organizations.
Trade Agreements: barriers to international trade lowered
Technology
Benefits
Markets
Cost Savings
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2
Legal and regulatory
Financial
Other
Disadvantages
Transportation costs
Security costs
Unskilled labor
Import restrictions
Criticisms
Risks
Political
Terrorism
Economic
Legal
Ethical
Cultural
Quality
Managing Global Operations
Troubles in different lifestyles, languages, etc. Best to do things in
person. Might have technological barriers. Political corruption.
Automation---influencing where to product goods, If main markets are
domestic. questioning where production should be done, rising
labor costs in some developing countries and poor safety records.
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