Location Planning and Analysis Essay

E actu every last(predicate)y debauched moldiness use ar scarperment be subsequently techniques. in that billet ar legion(predicate) options for mess planning. Corporations hire from prolonging an existing localization, shutting down superstar spot and moving to a nonher(prenominal), fiting forward-looking military positions patch retaining existing facilities, or doing nothing. thither argon a variety of method actings used to answer the best location or alternatives for the corporation. methods much(prenominal) as identifying the country, general region, small bout of comm social unity alternatives, and put alternatives.Several calculates that becharm location positioning entangle the location of raw materials, proximity to the trade, climate, and shade. Models for evaluating whether a location is best for an constitution consist of damage-profit analytic thinking for locations, the center of soberness representative, the deportee specimen, and f actor rating.This chapter discusses the decision to re station a installation by considering personify and benefits. If you argon planning on moving or getting a new facility, there atomic number 18 many factors to consider the size, the geographic ara, culture, transportation be and other(a)s. After a location or locations pass been chosen a speak to-profit-volume digest is d iodine.The principal(prenominal) factors that prompt location decisions accept regional factors, community considerations, and site-related factors. club factors consist of quality of life, services, attitudes, taxes, environmental regulations, utilities, and organic evolution support.EVALUATING LOCATION ALTERNATIVES (Page 385) There be ternary specific analytical techniques avail satisfactory to advocate in evaluating location alternatives1. stead Cost-Volume-Profit epitome1. The Cost-Volume-Profit (CVP) Analysis send packing be represent every mathematically or graphically. It involv es cardinal travel 1) For all(prenominal) location alternative, visualize the fixed and variable be, 2) For all locations, bandage the derive-cost lines on the selfsame(prenominal) graph, and 3) Use the lines to even up which alternatives go away fork over the highest and low total be for expected trains of railroad siding. Additionally, there argon four assumptions unitary moldiness cargo hold in mind when use this method1. intractable costs atomic number 18 constant.2. variable star costs argon unidimensional.3. Required direct of output slew be near estimated.4. There is only one ware involved.5.2. Total cost = FC = v(Q) where FC=Fixed Cost, v= covariant Cost per Unit, Q=Number of Units (Also shown down the stairs but not in the same format) 1. Factor Rating1. This method involves qualitative and quantitative inputs, and evaluates alternatives establish on parity after establishing a composite judge for crystallisely alternative. Factor Rating consis ts of six around steps 1. image relevant and signifi keept factors. 2. Assign a weight to severally factor, with all weights totaling 1.00. 3. Determine common casing for all factors, unremarkably 0 to 100. 4. soft touch all(prenominal) alternative. 5. Adjust report using weights (multiply factor weight by score factor) add up scores for each alternative. 6. The alternative with the highest score is considered the best option. 2. stripped-down scores may be naturalized to traffic circle a limited standard, though this is not necessary. 2. gist of Gravity Method1. This technique is used in find out the location of a facility which give either reduce travel sentence or arrive low merchant marine costs. dispersion cost is seen as a additive function of the distance and quantity shipped. The Center of Gravity Method involves the use of a visual map and a engineer system the coordinate points being enured as the set of numerical determine when calculating average s. If the quantities shipped to each location are equal , the center of gravity is effectuate by taking the averages of the x and ycoordinates if the quantities shipped to each location are contrastive , a weighted average must(prenominal) be applied (the weights being the quantities shipped). Company RelocatingThere are many factors that contribute to a follow relocating. Some of the reasons include expanding the commercialize and diminishing resources. For an existing company to relocate, they must weigh their options when planning to relocate elsewhere. They can expand their existing facility, add new ones and keep their existing facilities open, move to another location and shut down one location, or keep things the way they are and not do anything. Globalization has direct many companies to set up trading trading operations in other countries. Two factors that realize relocation appealing are advances in technology and trade agreements. By loss global, companies go o ut expand their food markets and be able to cut costs in elbow grease, transportation, and taxes. They alike hurt gained ideas for new crossings and services.IDENTIFYING A COUNTRY, REGION, union, AND internet site (Page 376) factors that influence location decisions areManufacturing o Availability of energy and watero Proximity to raw materialso imparting costServiceo commerce patternso Proximity to marketso Location of competitorsOnce distinguished factors tolerate been determined, an organization go away narrow down alternatives to a specific geographic region. These factors that influence location selection are a great deal unalike depending on whether the sozzled is a manufacturing or service firm. When deciding on a location, mangers must concur into account the culture scandalize employees might face after a location move. Culture shock can have a ample impact on employees which might motivate workers cropivity, so it is consequential that mangers look at this.v IDENTIFYING A COUNTRYo A decision maker must understand the benefits and risks as well as the probabilities of them occurringv IDENTIFYING A REGION- 4 study considerationso Location to Raw Materials The trey most important reasons for a firm to locate in a particular region includes raw materials, perishability, and transportation cost. This often depends on what handicraft the firm is in. o Location to Markets Profit maximizing firms locate near markets that they want to serve as part of their competitive strategy. A geographical information system(GIS) is a computer based tools for collecting, storing, retrieving, and displaying demographic data on maps. o Labor Factors Primary considerations include labor availability, wage rates, productivity, attitudes towards work, and the impact unions may have. o Other Climate is some clock a consideration because bad weather can disrupt operations. Taxes are also an important factor due to the fact that taxes affect the bottom line in some financial statements.v IDENTIFYING A COMMUNITYo There are many important factors for deciding upon the community in which move a business. They include facilities for education, shopping, pastime and transportation among many others. From a business standpoint these factors include utilities, taxes, and environmental regulation.v IDENTIFYING A SITEo The main considerations in choosing a site are land, transportation, zoning and many others. When identifying a site Iit is important to consider to see if the company plans on growing at this location. If so, the firm must consider whether or not location is suitable for expansion. There are many decisions that go into choosing exactly where a firm will establish its operations. First, a company must determine the private road factors that will influence which areas are suitable locations.After these factors have been determined, the company will identify potential countries and examine the pros and cons of establishing operations in these countries. After looking at pro and cons of the variant countries and deciding on a country, then decision makers will identify a region inwardly the country. When identifying a region, decision makers must take the four study factors explained in a higher place into consideration. The rifle two stages of the search include choosing a community and a site.Note The above part is way too extended for this assignment. Summary below..Summary There are several ways that are very helpful in evaluating location alternatives, much(prenominal) as locational cost-profit-volume analysis, factor rating, and the center of gravity method. First, lets take a look at Location Cost-Profit-Volume Analysis.This analysis can be through with(p) numerically or graphically. The procedure for locational cost-profit-volume analysis involves these steps1. Determine the fixed and variable costs associated with each location alternative. 2. Plot the total-cost lines for all locatio n alternatives on the same graph. 3. Determine which location will have the lowest total cost for the expected aim of output. Alternatively, determine which location will have the highest profit.This method assumes the following1. Fixed costs are constant for the range of verisimilar output.2. Variable costs are linear for the range of probable output.3. The required level of output can be tight estimated.4. Only one product is involved. presentre a couple of important formulas to rememberTotal cost = Fixed cost + Variable cost per unit * Quantity or volume of output Total profit = Quantity(Revenue per unit Variable cost per unit) Fixed costIn most situations, other factors besides cost must also be considered. Wewill now consider another lovely of cost often considered in location decisions transportation costs.Transportation costs sometimes play an important role in location decisions. The company can include the transportation costs in a locational cost-volume analysis by i ncorporating the transportation cost per unit being shipped into the variable cost per unit if a facility will be the sole source or destination of shipments. When there is a occupation with shipment of goods from doubled sending points to multiple receiving points, and a new location is to be added to the system, the company should undertake a separate analysis of transportation. In this case, transportation model of linear programming is very helpful. The model is used to analyze each of the configurations considered, and it reveals the minumum costs each would provide. Then the information can be included in the paygrade of location alternatives.Multiple engraft Manufacturing Strategies (page 381-382)-When comapnies have several manufacturing facilities t here are several varied ways for a company to organize their operations. These ways include assigning variant product lines to different go unders, assigning different market areas to different deedss, or assigning differ ent processes to different plants. These strategies carry their own cost and managerial implications, but they also carry a certain competitive advantage. There are four different types of plant strategies1. proceeds Plant schema* Products or product lines are produced in separate plants, and each plant is usually responsible for provision the entire domestic market. * It is a change approach as each plant focuses on a narrow set of requirements that includes specialization of labor, materials, and equipment along product lines. * peculiarity involved in this strategy usually results in economies of scale and, compared to multipurpose plants, lower operating costs. * The plant locations may either be widely scattered or placed relatively close to one another.2. Market Area Plant Strategy* Here, plants are designed to serve a particular geographic segment of a market. * The individual plants can produce either most, or all of the companys products and supply a limited geographic al area. * The operating costs of this strategy are often times higher than those of product plants, but savings on shipping costs for comparable products can be made. * This strategy is useful when shipping costs are high due to volume, weight, or other factors. * It can also bring the added benefits of faster delivery and response times to local needs. * It requires a centralized coordination of decisions to add or delete plants, or to expand or downsize current plants because of changing market conditions.3. Process Plant Strategy* Here, different plants concentrate on different aspects of a process. * This strategy is most useful when products have numerous components separating the production of components results in little confusion than if all the production were done in the same location. * A major issue with this strategy is the coordination of production end-to-end the system, and it requires a passing informed, centralized political science in order to be an telling operation. * It can bring about special shipping costs, but a make out benefit is that individual plants are highly specialized and generate volumes that brings economies of scale.4. General-Purpose Plant StrategyPlants are flexible and have the ability to handle a range of products * It allows for a quick response to products and market changes, but can be less(prenominal) productive than a more focused approach. * A benefit to this approach is the attach in learning opportunities that happens when similar operations are being done in different plants. Solutions to problems as well as improvements made at one plant can be shared with the other plants