Chapter ndash; 9Service Facility Location.ppt

Chapter – 9 Service Facility Location 9 Service Management (5e) Operations, Strategy, Information Technology By Fitzsimmons and Fitzsimmons 9-* Discuss how a facility location is affected by selection of the criteria for judging customer service. Locate a single facility using the cross-median approach. Discuss nontraditional location strategies: competitive clustering, saturation marketing, marketing intermediaries, substitution of communication for transportation, and the impact of the Internet on service location. Learning Objectives 9-* Flexibility: of a location is a measure of the degree to which the service can react to changing economic situations. Therefore, in location decisions plan for future economic changes and portfolio effect. Competitive positioning: refers to methods by which the firm can establish itself relative to its competitors. Multiple location or prime location can be barrier to entry. Demand management: it is the ability to control the quality, quantity, and timing of demand. For example, a hotel can control demand by locating near a diverse set of market generators that supply a steady demand . Focus: can be developed by offering the same narrowly defined service at many locations. Service Facility Location Planning Geographic Representation Location options and travel distance can be represented on either a plane (flat surface) or a network. Plane provides infinite possibilities – you can move in any direction represented by XY coordinates (sometimes called the latitude and the longitude). Distance between locations is measured in two ways: Euclidian metric or vector – using Pythagorean theorem Metropolitan method – more like a grid travel in a city, where we move at right angle. 9-* 9-* Location on a Plane Y Destination j Yj Euclidea