Chap008-LocationPlanningandAnalysis课程.pptVIP

8-* Location Planning and Analysis CHAPTER 8 Location Planning and Analysis McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright ? 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Making Location Decisions Decide on the criteria Identify the important factors Develop location alternatives Evaluate the alternatives Make selection Location Decision Factors Regional Factors Site-related Factors Community Considerations Location of raw materials Location of markets Labor factors Climate and taxes Regional Factors Services Taxes Environmental regulations Developer support Community Considerations Land Transportation Environmental Legal Site Related Factors Comparison of Service and Manufacturing Considerations Manufacturing/Distribution Service/Retail Cost Focus Revenue focus Transportation modes/costs Demographics: age,income,etc Energy availability, costs Population Labor cost/availability/skills Competition Building/leasing costs Traffic volume/patterns Customer access/parking Table 8.2 Evaluating Locations Cost-Profit-Volume Analysis Determine fixed and variable costs Plot total costs Determine lowest total costs Location Cost-Volume Analysis Assumptions Fixed costs are constant Variable costs are linear Output can be closely estimated Only one product involved Example 1: Cost-Volume Analysis Fixed and variable costs for four potential locations Example 1: Solution Example 1: Solution 800 700 600 500 400 300 200 100 0 Annual Output 000 $ 000 8 10 12 14 16 6 4 2 0 A B C B Superior C Superior A Superior D Evaluating Locations Transportation Model Decision based on movement costs of raw materials or finished goods Factor Rating Decision based on quantitative and qualitative inputs Center of Gravity Method Decision based on minimum distribution costs * * * * * * 8-* Location Planning and Analysis * * * * * *