OIM 301 Lecture Notes - Lecture 8: Factor 5, Absenteeism
9 Mar 2017
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3/9/17: location strategy, the objective of location strategy is to maximize the benefit of location to the firm. Intangible less easy to quantify and include education, public transportation, community, quality of life: factors that affect location decisions, costs materials, taxes, proximity to markets, very important to services. Develop a list of relevant factors called key success factors: 2. Assign a weight to each factor: 3. Develop a scale for each factor: 4. Score each location for each factor: 5. Multiply score by weights for each factor for each location: 6. Recommend the location with the highest point score: locational break-even analysis example crossover, method of cost-volume analysis used for industrial locations, three steps in the method, 1. Determine fixed and variable costs for each location: 2. Plot the cost for each location: 3. The firm wants to find a (cid:498)central(cid:499) location in which to build a new warehouse.
