Operations Management Rev for SU 3 & 4

SU 3 Chapter 8 <Location Decisions> Outline: 1. The Strategic Importance of Location Location Strategy: The objective is to maximize the benefit of the location . An important decision to be made by a firm Global nature of business Significant impact on costs Location decisions made infrequently 2. Factors That Affect Location Decisions Location and Costs . Location decisions to support low-cost strategy require careful consideration. Once location is committed, many costs are fixed. Concentrate on determining an optimal facility location. Location and Innovations Location criteria will move away from cost-focus if innovation is critical. (4) Key Attributes affecting innovation and competitiveness. >>1 >> High quality and specialized resources >>2 >> An environment that promotes investment and local competition >>3 >> A sophisticated local market >>4 >> Presence of related and supporting business Factors That Affect Location Deci...