Discuss importance of location decisions. - PowerPoint PPT Presentation

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Discuss importance of location decisions.

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Location planning is the determination of where to geographically locate your ... you work for a retail organization that is rapidly expanding (e.g. Starbucks) ... – PowerPoint PPT presentation

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Title: Discuss importance of location decisions.


1
Chapter 8 Objectives
  • Discuss importance of location decisions.
  • Discuss factors that influence location
    decisions.
  • Discuss recent location trends.
  • Use techniques to solve typical location
    problems
  • Cost-Profit-Volume Analysis.
  • Center of Gravity Method.

2
Chapter 8 - Location Planning and Analysis
  • Location planning is the determination of where
    to geographically locate your manufacturing or
    service facilities.
  • Typically one of the most infrequent activities
    unless you work for a retail organization that is
    rapidly expanding (e.g. Starbucks)

3
Center of Gravity Method
  • Used to determine location when minimizing
    shipping costs or travel time is the primary
    objective.

4
Center of Gravity Method
  • Identify destinations using a coordinate system
    (x and y axis).
  • If all weights are equal then

y axis
x axis
5
Center of Gravity Method
  • Identify destinations using a coordinate system
    (x and y axis).
  • If all weights are not equal then

y axis
x axis
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