Facility Location And FacilityLayoutStrategic Importance Supplychain

 Facility Area And FacilityLayoutStrategic Importance Supplychain Research Newspaper

Facility Area and Service

Layout

Tactical Importance

• Supply-chain supervision is critical

• Facility location—intrinsically related to SCM

• Good examples:

– FedEx: While beginning a link for Asia in Korea

1995—

• it had to judge several sites

• Connecting its American (Memphis) and European (Paris) Hubs • BTW, the facility was closed as well as the new link since 2009 is in Guangzhou, Southern China

– Mercedes' first offshore plant in Vance, The state of alabama

• Evaluated 170 sites in 40 states and 2 countries

– Hard Rock Café location in Moscow in 2002

• Took three years of progress planning

• Russian Food Chain

Center Location

• Global Character of Position Decision

• Objective: Improve the benefit of location

to a company

– Online marketing strategy: New Marketplaces

– Global Growth: New Markets and supply chain

concerns

– Cost of Doing Business: Attractive alternatives to

relocate business elsewhere

you

Location Choices

• Broaden existing service

• Tasks location when retaining existing

location

• Close existing operation and move to a

new site

Location Decision Factors

Nation Factors

Community Considerations

Regional Factors

Site-related Factors

Internet site Selection Factors (Country and

Region)

Country

Government stableness

Government rules

Political and economic devices

Economic stableness

Exchange rates

Culture

Environment

Export and import regulations,

duties and fees

Organic material availableness

Number and proximity of suppliers

Travel system

Labor pool and cost

Obtainable technology

Business travel

Technological expertise

Region

Labor (availability, price and unions)

Proximity of customers

Number of buyers

Construction/leasing costs

Land costs

Modes and quality of transportation

Transportation costs

Government regulations

Environmental regulations

Natural material availableness

Commercial travel

Climate

Resources

2

Internet site Selection Factors -(Community and

Site)

Community

Community government

Neighborhood business regulations

Environmental regulations

Government solutions

Business local climate

Community providers

Transportation system

Proximity of shoppers

Concentration of shoppers

Taxes

Construction/leasing costs

Land cost

Availability of sites

Finance

Labor pool area

Community inducements

Proximity of suppliers

Web page

Customer base

Construction/leasing cost

Property cost

Web page size

Vehicles

Utilities

Housing code restrictions

Targeted traffic

Safety/security

Competition

Area organization climate

Cash flow level

A lot of Facts: Area Decisions

The positive effect: A two way avenue for People in the usa

Labor costs and productivity issues

Staff member skills: e. g. phone centers and CPA careers to India.

Government Offers: Alabama offered $169K per job in

tax offers to Mercedes in 1993

• Sunbelt is growing

• Attitudes regarding: pollution, housing code, intellectual property, unionism, turnover, absenteeism, punctuality,

bribe, integrity, etc .

• Proximity

– Markets

– Suppliers

– Competition (clustering)

Evaluating Places

• Element Rating (The Scoring Model)

– Decision based on quantitative and qualitative

inputs

• Center of Gravity Technique

– Decision based on lowest distribution costs

• Transportation Model

– Decision based upon movement costs of raw

materials or perhaps finished products

3

Area Factor Ranking

Scores (0 to 100)

Location Factor

Weight

Labor pool and climate

. 31

Proximity to suppliers

. twenty

Wage prices

. 15

Community environment. 12-15

Proximity to customers. 15

Shipping ways

. 05

Air flow service

. 05

Site one particular

80

100

60

seventy five

65

85

50

Site 2

65

91

95

80

90

92

sixty five

Site 3

90

75

72

85

95

sixty-five

90

Even more

Location Element Rating

(Weighted Scores)

Measured Scores

Position Factor

Labor...

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