Facility+location+decisions
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This document discusses facility location decisions in supply chain management. It covers why location is important, the factors to consider in location strategies, and three models used to evaluate potential locations: the weighted factor rating model, break even model, and center of gravity model. Location decisions have long term impacts and consider geography, delivery costs, and serving customers. Critical location factors include trade agreements, country competitiveness, taxes, infrastructure, labor, and quality of life issues.
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Facility location
The document discusses various factors to consider when making facility location decisions. It outlines the strategic importance of location decisions and how they can impact costs, revenues and competitive position. It also describes different location options and factors that influence the location decision process, including regional factors, site-related factors, and community considerations. Quantitative methods for evaluating location alternatives are also presented, including cost-volume analysis and the centroid method.
Centre of gravity method of location planning
The centre of gravity method finds the ideal location for a distribution centre that minimizes total weighted distances travelled. It involves calculating the weighted average of existing demand points' coordinates, using weights proportional to demand, to identify the single point that minimizes total weighted distance across all points. Similarly, the load-distance method evaluates potential facility sites by computing the total weighted distance from each site to existing demand points, and choosing the site with the lowest total weighted distance. Both methods aim to optimize location based on minimizing distribution costs.
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The document discusses various factors and methods used for facility location analysis. It describes key location factors such as proximity to suppliers, customers, labor, and community considerations. Methods covered include factor rating, load-distance modeling, center of gravity, break-even analysis, and transportation modeling. An example uses the load-distance model to evaluate potential warehouse locations based on distance to stores. The document provides information on different analytical approaches for evaluating and selecting among location alternatives.
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The document discusses facility location and the process of selecting the best geographic location. It outlines key objectives like reducing costs and coordinating with government policies. The main steps discussed are selecting between domestic or international locations, then choosing a region, locality, and exact site based on factors like resources, market access, transportation and climate. Location analysis techniques covered include location factor rating, center of gravity, load distance, break even analysis, and weighted factor rating. The overall goal is to identify the optimal location for operating facilities.
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The document provides an overview of facility location planning, including quantitative methods and models used to determine optimal locations. It discusses factors that influence facility location such as market proximity, transportation, labor, and government policies. Location models addressed include single facility problems that aim to minimize maximum distance, and multiple facility problems formulated as set covering problems to minimize the number of facilities needed. Quantitative techniques include break-even analysis, center of gravity models, and solving location problems on lines and planes using median and gravity center approaches.
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The document discusses various factors to consider when making facility location decisions. It outlines the strategic importance of location decisions and how they can impact costs, revenues and competitive position. It also describes different location options and factors that influence the location decision process, including regional factors, site-related factors, and community considerations. Quantitative methods for evaluating location alternatives are also presented, including cost-volume analysis and the centroid method.
Centre of gravity method of location planning
The centre of gravity method finds the ideal location for a distribution centre that minimizes total weighted distances travelled. It involves calculating the weighted average of existing demand points' coordinates, using weights proportional to demand, to identify the single point that minimizes total weighted distance across all points. Similarly, the load-distance method evaluates potential facility sites by computing the total weighted distance from each site to existing demand points, and choosing the site with the lowest total weighted distance. Both methods aim to optimize location based on minimizing distribution costs.
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The document discusses various factors and methods used for facility location analysis. It describes key location factors such as proximity to suppliers, customers, labor, and community considerations. Methods covered include factor rating, load-distance modeling, center of gravity, break-even analysis, and transportation modeling. An example uses the load-distance model to evaluate potential warehouse locations based on distance to stores. The document provides information on different analytical approaches for evaluating and selecting among location alternatives.
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The document discusses facility location and the process of selecting the best geographic location. It outlines key objectives like reducing costs and coordinating with government policies. The main steps discussed are selecting between domestic or international locations, then choosing a region, locality, and exact site based on factors like resources, market access, transportation and climate. Location analysis techniques covered include location factor rating, center of gravity, load distance, break even analysis, and weighted factor rating. The overall goal is to identify the optimal location for operating facilities.
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The document provides an overview of facility location planning, including quantitative methods and models used to determine optimal locations. It discusses factors that influence facility location such as market proximity, transportation, labor, and government policies. Location models addressed include single facility problems that aim to minimize maximum distance, and multiple facility problems formulated as set covering problems to minimize the number of facilities needed. Quantitative techniques include break-even analysis, center of gravity models, and solving location problems on lines and planes using median and gravity center approaches.
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The document discusses facility location and plant layout. It provides information on various factors to consider for optimal facility location such as proximity to markets, transportation, and labor costs. It also describes different models for evaluating potential facility locations, including factor rating, weighted factor rating, load-distance, and break even analysis methods. Additionally, it covers objectives, principles and types of plant layouts including process, product, combination and fixed position layouts. The key factors and models discussed can help companies evaluate and select the best location and layout design for their facilities.
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Location planning is important for businesses as it impacts costs and demand. Key factors that influence location include raw materials, proximity to market, climate, and culture. Models for evaluating the best location include cost-profit analysis, the center of gravity model, transportation model, and factor rating. Regional factors like raw materials, perishability, and transportation costs are important to consider along with community factors such as education and transportation. Multiple plant strategies include dedicating plants to specific products, market areas, processes, or general purposes.
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- Efficiency & Utilization
- Calculation of capacity Utilization
- Determinants of Effective Capacity
- Calculating Processing Requirements
- Capacity Planning Process
- Planning Over a Time Horizon
- Economies of Scale
- Optimal Rate of Output
-Capacity Planning Alternatives Evaluating Models
Cost Volume Analysis: Break-even Analysis
Decision Theory
Financial Analysis
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- PROCESS PLANNING
Methods
- INTERACTION OF PLANNING FUNCTIONS..
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Location Planning.pptx
The document discusses various factors to consider when making location decisions for facilities and operations. It covers evaluating location alternatives based on criteria like costs, markets, and supply chain factors. Specific procedures are outlined, such as identifying potential countries, regions, community sites, and individual facility locations. Quantitative techniques for evaluating alternatives are presented, including cost-volume-profit analysis, factor rating models, and the center of gravity method. Overall, the document provides an overview of the strategic importance of location decisions and a framework for systematically analyzing alternative locations.
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Plant location may be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness.
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The document discusses facility planning, including defining facility planning, important factors to consider in evaluating facility plans, and methods for analyzing alternative facility plans. Specifically, it outlines the engineering design process for facility planning, which involves formulating the problem, analyzing alternatives, evaluating designs, and selecting a preferred design. It also describes techniques for comparing factors and plans, such as pairwise comparison and factor analysis, to help identify the best facility plan.
Ballou13
This document discusses facility location decisions and methods for analyzing location strategies. It begins with an overview of what can be located, such as plants, warehouses, retail outlets, and key questions to consider around location. Common methods for solving single and multiple facility location problems are then presented, including the center-of-gravity (COG) method and optimization approaches. The document concludes with examples of applying COG and discussing other techniques like simulation and weighted checklists for analyzing retail location decisions.
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The document discusses facility location for Jubilant Life Sciences, which has five existing plants. It evaluates the optimal location for a new facility using the median and center of gravity methods. The median method identifies coordinates of (24.2, 76.14) with a minimum transportation cost of Rs. 51157.4. The center of gravity method finds coordinates of (22.25, 76.58) but with a higher transportation cost of Rs. 51952. Therefore, the median method provides the best location for the new facility.
Plant location and layout
factors that must be considered at the time of deciding about plant location. How to locate the machines and equipments in plants.
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The document discusses facility location and plant layout. It provides information on various factors to consider for optimal facility location such as proximity to markets, transportation, and labor costs. It also describes different models for evaluating potential facility locations, including factor rating, weighted factor rating, load-distance, and break even analysis methods. Additionally, it covers objectives, principles and types of plant layouts including process, product, combination and fixed position layouts. The key factors and models discussed can help companies evaluate and select the best location and layout design for their facilities.
location strategy, operation management
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Location Planning
Location planning is important for businesses as it impacts costs and demand. Key factors that influence location include raw materials, proximity to market, climate, and culture. Models for evaluating the best location include cost-profit analysis, the center of gravity model, transportation model, and factor rating. Regional factors like raw materials, perishability, and transportation costs are important to consider along with community factors such as education and transportation. Multiple plant strategies include dedicating plants to specific products, market areas, processes, or general purposes.
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Value added service in logistics
Value added logistics aims to create more value in the logistics chain. Traditional carriers only focus on transportation but now provide additional services like packaging and labeling. Logistics provides value through form utility by processing raw materials, place utility by moving goods to where demand exists, time utility by having goods available when needed, and possession utility through promotional activities. Efficient logistics reduces costs and adds value through better location, time, and control advantages along the supply chain. Common value-added services include packaging, fulfillment, inventory management, and transportation management.
Global supply chain management
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
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This document discusses various methods for selecting an optimal location for a new plant. It describes point rating, factor rating, break-even analysis, qualitative, and center of gravity methods. The point rating method assigns points to different location factors like fuel, transportation, water, labor, etc and chooses the location with the highest total points. The factor rating method rates each location based on factors weighted by importance. The break-even analysis examines costs and revenues at different output levels. The qualitative method weighs economic and non-economic criteria. The center of gravity method places existing locations on a grid and calculates the centroid location based on distances and shipment volumes.
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This document outlines the purchase function and procurement procedure. The goals of material handling are to obtain the right quality, quantity, timing, and location of supplies at the lowest cost. The purchasing function involves buying the best value by obtaining the correct amount and quality of goods from reliable suppliers at a good price and with good service. Objectives of purchasing include providing a consistent flow of materials for operations, finding alternative suppliers, buying in economic quantities, and maintaining positive vendor relationships. Key functions of purchasing are procuring materials, evaluating costs, managing paperwork and accounting, and ensuring policy compliance. Procurement involves the process of acquiring goods, works or services, and tenders can be open, limited, single, negotiated or item-rate based.
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This document provides an overview of plant location, layout, and line balancing for an industrial management course. It covers factors to consider for plant location such as proximity to materials, labor, transportation and utilities. It also discusses objectives and principles of plant layout such as minimizing movement, uniform flow, and space utilization. Additionally, it describes different types of facility layouts and reasons for redesigning layouts.
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The chapter discusses key warehousing decisions including ownership, number and location of warehouses, layout and design. Warehousing plays an important role in transportation consolidation, product mixing, and smoothing operations. Key decisions include determining whether to use public, private or contract warehousing based on factors like volume and demand stability. Effective warehouse layout separates key activities like receiving, storage and shipping. Materials handling equipment and packaging are also important factors to consider for efficiency.
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Contents of Presentation-
Capacity Planning:
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- Forecasting
- Reasons
- Importance
- Examples
- Capacity Terminology
- Efficiency & Utilization
- Calculation of capacity Utilization
- Determinants of Effective Capacity
- Calculating Processing Requirements
- Capacity Planning Process
- Planning Over a Time Horizon
- Economies of Scale
- Optimal Rate of Output
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Cost Volume Analysis: Break-even Analysis
Decision Theory
Financial Analysis
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Methods
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This document provides an overview of transportation in supply chains. It discusses the role of transportation in connecting suppliers and customers. Various modes of transportation are described, including truck, air, rail, water, pipeline, and intermodal. Advantages and disadvantages of each mode are outlined. The document also discusses transportation infrastructure and policies, factors that influence transportation network design such as costs and customer needs, and provides examples of direct shipping networks and networks using consolidation points. It concludes with a case study of the unique dabbawala system used in Mumbai to deliver home-cooked meals to workers.
Location Planning.pptx
The document discusses various factors to consider when making location decisions for facilities and operations. It covers evaluating location alternatives based on criteria like costs, markets, and supply chain factors. Specific procedures are outlined, such as identifying potential countries, regions, community sites, and individual facility locations. Quantitative techniques for evaluating alternatives are presented, including cost-volume-profit analysis, factor rating models, and the center of gravity method. Overall, the document provides an overview of the strategic importance of location decisions and a framework for systematically analyzing alternative locations.
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Logistic management and supply chain management are critical for businesses. Logistics involves planning, implementing, and controlling the flow of materials and finished goods from suppliers to customers. It has become more important with globalization, a focus on integrated supply chain management, and the outsourcing of non-core functions. Effective logistics can provide both cost leadership and differentiated products and services by optimizing activities across the value chain.
Global supply chain management an overview
This document discusses global supply chain management. It begins with a brief history of global supply chains and how they have evolved with globalization and new technologies. It then defines what a global supply chain is and discusses why global supply chain management is needed. It outlines the key components, factors, objectives, advantages, and disadvantages of global supply chains. It also discusses benefits, processes, challenges, and strategies for managing global supply chains effectively. The document provides a comprehensive overview of global supply chain management.
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This document discusses facility location decisions and methods for analyzing location strategies. It begins with an overview of what can be located, such as plants, warehouses, retail outlets, and key questions to consider around location. Common methods for solving single and multiple facility location problems are then presented, including the center-of-gravity (COG) method and optimization approaches. The document concludes with examples of applying COG and discussing other techniques like simulation and weighted checklists for analyzing retail location decisions.
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. Facility location is an important problem faced by companies in many industries. Finding an optimal
location for facilities and determining their size involves the consideration of many factors, including proximity to customers and suppliers, availability of skilled employees and support services, and cost-related factors, for
example, construction or leasing costs, utility costs, taxes, availability of support services, and others. The demand of the surrounding region plays an important role in location decisions. A high population density may not necessarily cause a proportional demand for products or services. The demography of a region could dictate the demand
for products, and this, in turn, affects a facility’s size and location. The location of a company’s competitors also affects the location of that company’s facilities. Another important aspect in facility location modeling is that many models focus on current demand and do not adequately consider future demand. However, while making location
decisions in an industry in decline, carefully and accurately considering future demand is especially important, and the question in focus is whether to shrink or close down certain facilities with the objective of keeping a certain market share or maximizing profit, especially in a competitive environment. This paper develops a model which enables companies to select sites for their businesses according to their
strategy. The model analyzes the strategic position of the company and forms a guideline for the decision. It investigates which facilities should be closed, (re)opened, shrunk, or expanded. If facilities are to shrink or expand,
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The document discusses sources of competitive advantage and how to sustain them. It identifies four main sources: structural advantage through economies of scale; strong frontline execution; insight and foresight to anticipate changes; and lower costs. It also discusses differentiation and analyzing value chains to understand customer needs and find unique ways to meet them better than competitors. Sustaining advantage requires designing strategy for robustness against threats like imitation and substitution, and having an agile organization that can learn and adapt over time.
Strategy
This document outlines learning objectives and content for a service strategy course. It covers formulating a strategic service vision, analyzing a firm's competitive environment and strategies, examining customer purchase decisions and the role of information in services. Key topics discussed include segmenting customer markets, developing service concepts, crafting operating strategies, designing delivery systems, and categorizing firms by competitiveness stage. The document provides guidance on strategic vision components and discusses generic competitive strategies, information uses, virtual value chains, and limits to information use. Discussion topics posed at the end relate examples of strategy combinations, ethical issues in micro-marketing, most powerful information uses, examples of sustained world-class firms, and whether top firms can be considered learning organizations.
2006 OWS Workshop Presentation V3.0
The document discusses key considerations for structuring outsourcing engagements successfully. It covers factors like company culture, quality needs, cost savings goals, and conducting a strategic offshore planning process. Implementing governance is important to manage vendor relationships, performance, resources, finances, and risks. Critical success factors include having the right governance framework, addressing cultural differences, and ensuring clear objectives and communications.
Strategy
The document discusses the relationship between corporate strategy and supply chain management. It explains that the corporate mission and strategy should dictate the strategies for each functional area, including operations and supply chain management. The supply chain strategy must support the overall corporate strategy through its decisions around facilities, inventory, transportation, information, and market segmentation. Dell's strategy and supply chain model is provided as an example of strategic fit between the corporate goals of customization, speed, and affordability and its supply chain design.
Ignite 2015 NA - Paul Lord - "Insights on Supply Chain for the Chemical Indus...
The document discusses supply chain optimization and alignment. It notes that supply chains involve complex interdependencies between demand, supply, and product. It emphasizes understanding constraints, like physical and virtual limits, rather than just risks. Aligning supply networks, decision processes, and incentives can maximize business value. Transforming supply chains is complex and requires developing capabilities like demand management and strategic governance. The overall recommendation is to analyze risks and constraints, quantify supply network performance, align supply decisions with demand patterns and product strategies, and create a strategic case for investing in balanced supply and demand capabilities.
Service strategy
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The document discusses factors to consider when choosing a business location. It divides the factors into supply factors and demand factors. Supply factors relate to operating costs and include labor costs, land/property costs, energy and transportation costs, and community factors. Demand factors relate to customers and revenues. They include customer convenience, available labor skills, site suitability, brand image, and potential for expansion. Choosing the right location requires evaluating both supply and demand factors to maximize profits.
Location strategies ppt @ bec doms
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trend in strategic sourcing
The document discusses key trends in strategic sourcing, including the growing role of analytics, defining digital procurement, emerging digital technologies, and how procurement is changing. It notes that procurement will contribute more to organizational strategy, become more agile and partner directly with business units. The COVID-19 pandemic has highlighted the need for more resilient supply chains and a focus on supplier partnerships. Organizations must determine the right level of resilience and revisit supply chain strategies.
Key trend in strategic sourcing
The document discusses key trends in strategic sourcing, including the growing role of analytics, defining digital procurement, emerging digital technologies, and how procurement is changing. It notes that procurement will become more strategic and partner directly with business units using "touchless" processes. The COVID-19 pandemic has disrupted supply chains but also created opportunities to focus on resilience, zero-based category strategies, and an agile operating model. Organizations need to determine the right level of resilience and embed it throughout their supply chain strategies.
trend ib strategic sourcing
The document discusses key trends in strategic sourcing, including the growing role of analytics, defining digital procurement, emerging digital technologies, and how procurement is changing. It notes that procurement will become more strategic and partner directly with business units using "touchless" processes. The COVID-19 pandemic has highlighted the need for more resilient supply chains, and procurement must focus on areas like category strategies, supplier partnerships, and an agile operating model. Organizations need to determine the right level of resilience and embed it throughout their supply chains.
Lecture 1a it and strategy
This document provides an overview and summary of a lecture on IT strategy. It discusses identifying strategies and the role of IT in business strategy. Some key points covered include:
- Porter's competitive model and how it can be applied to analyze an industry and a company's strategic position
- The different types of competitive strategies such as cost leadership, differentiation, and innovation strategies
- How technology can potentially change the basis of competition, balance of power, and barriers to entry in an industry
- The importance of understanding customers, competitors, markets, and partnerships for strategic analysis
- Potential opportunities and risks of emerging technologies for business strategies and models
it and strategy
This document provides an overview and summary of a lecture on IT strategy. It begins with introductions and then discusses the role of information technology in business strategy and competitive advantage. Key frameworks for analyzing strategy are reviewed, including Porter's competitive forces model and the strategic alignment model. The lecture explores how IT can impact industry competition and the components of a business model and strategic vision. Opportunities and risks of IT for strategy are examined. The document contains several figures illustrating strategic concepts.
Beth Land-The Inside Track of Site Selection WEDN 2019
Site selection process for SiteSelectionGroup, With tips and takeaways, site visit tips, role of economic developer
Atlas IEDC Marketing Specific Sites
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Global Supply Chain Dynamics and the Changing Risk Management Agenda - Part II
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Global Service Delivery Market Overview.pdf
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Get better 3 pl bids
An improved business operating model enabled through a cost-effective 3PL agreement can be a game-changer if terms are thoroughly evaluated and properly negotiated.
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Facility+location+decisions
- 1. DISC 333: Supply chain management Facility Location Decisions
- 2. Why Facility Location? Long term impact on a supply chain; Evidence that innovation and competition are concentrated geographically; Geography affect the speed of delivery and cost in serving customers; Facility location decisions involve: Determining the location of the facility; Defining the strategic role of the facility; Identifying markets served by the facility;
- 3. Location Strategies The central question is: “How will this location affect our performance by cost, access to talent, and access to customers?”
- 5. Critical Location Factors Regional Trade Agreements and the World Trade Organization; Competitiveness of Nations; Government Taxes and Incentives (tariffs, foreign trade zones, personal and corporate income taxes); Currency Stability; Access and Proximity to Markets/Customers; Environmental Issues; Labor Issues; Right to Work Laws; Access to Suppliers and Cost; Utility Availability and Cost; Quality of Life Issues; Land Availability and Costs;
- 6. Facility Location Models The Weighted Factor Rating Model The Break Even Model The Center of Gravity Model
- 7. The Weighted Factor Rating Model Example Calculation (for China): 0.2 (100) + 0.15 (100) + 0.25 (80) + 0.3 (70) + 0.1 (80) = 84
- 8. The Break Even Model A 1600,000 B C 1200,000 800,000 400,000 4,000 3,000 2,000 1,000
- 9. The Center of Gravity Model