SMG OM 323 Chapter ch.8: OM323Ch8

• School: Boston University
• Department: Operations & Technology Management
• Course: SMG OM 323
• Professor: Paul Morrison

Document Summary

Om323 professor kadets chapter 8 february 6, 2017. 8. 2 the nature of location decisions: strategic importance of location decisions. Location can impact capacity and flexibility: objectives of location decisions, supply chain considerations, location options . Add new locations while retaining existing ones. Shutdown at one location and move to another. Facilitating factors: made globalization attractive and feasible for business organizations. 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. General procedure for making location decisions criteria: decide on criteria to use for evaluating location alternatives, such as increased revenues, decreased cost, or community service, identify important factors, such as location of markets or raw materials. 8. 5 identifying a country, region, community and site. Location of raw materials: necessity, perishability, transportation costs. Location of markets: competitive pressures, labor factors, other factors.