作业管理 location planning and analyse

1、Unit 09: Location Planning and Analysis- Stevenson: CH 8, & CH8S2Harcourt, Inc 1-1The Need for Location Decisions Marketing StrategyThe addition of new locations to an existing system for expanding their markets. GrowthThe addition of a new location to complement an existing system when an organ

2、ization experiences a growth in demand for its product or service that cannot be satisfied by expansion at an existing location. Depletion of Input Resources Shift in Markets Cost of Doing Business3Harcourt, Inc 1-1Strategic Importance of Location Decisions (I) Location decisions are closely tied to

3、 an organizations strategies; e.g.,A strategy of being a low-cost producer might result in locating where labor or material cost are low, orLocating near markets or raw materials to reduce transportation costsA strategy of increasing profits by increasing market share might result in Locating in hig

4、h-traffic areasA strategy that emphasizes convenience for the customer might result in Having many locations where customers can transact their business or make purchases (e.g., branch banks, ATMs, service stations, fast-food outlets) Location decisions entail a long-term commitment, which makes mis

5、takes difficult to overcome4Harcourt, Inc 1-1Strategic Importance of Location Decisions (II) Location decisions often have an impact on investment requirements, operating costs and revenue, and operations.A poor choice of location might result in Excessive transportation costs, a shortage of qualifi

6、ed labor, loss of competitive advantage, inadequate supplies of raw materials, or some similar of condition that is detrimental to operationsFor services, a poor location could result inLack of customers and/or high operating costs Locations decisions are strategic important to supply chains. 5Harco

7、urt, Inc 1-1Objectives of Location Decisions Location criteria can depend on where a business is in the supply chainThe retail end of a supply chainAccessibility, consumer demographics (population density, age distribution, average buyer income), traffic patterns, and local customsThe beginning of a

8、 supply chainNear the source of the raw materialsThe middle of a supply chainNear suppliers or near markets (customers), depending on a variety of circumstances 6Harcourt, Inc 1-1Locations Options Expanding an existing facility Adding new locations while retaining existing ones Shutting down at one

9、location and move to another Doing nothing7Harcourt, Inc 1-1Location Decision FactorsRegional FactorsSite-related FactorsMultiple Plant StrategiesCommunity Considerations8Harcourt, Inc 1-1Regional Factors Location of raw materials Location of markets Labor factors Climate and taxes9Harcourt, Inc 1-1

10、Community Considerations Quality of life Services Attitudes Taxes Environmental regulations Utilities Development support10Harcourt, Inc 1-1Site-Related Factors Land Transportation Environmental/Legal11Harcourt, Inc 1-1Multiple Plant Strategies Product plant strategy Market area plant strategy Proce

11、ss plant strategy12Harcourt, Inc 1-1Multiple Plant Strategies Product plant strategyEntire products or product lines are produced in separate plantsEach plant usually supplies the entire domestic marketPlant locations may be widely scattered or clustered close to one another Plant-A for Vegetable Oi

12、lPlant-B for MilkPlant-? for Instant Noodle13Harcourt, Inc 1-1Multiple Plant Strategies Market area plant strategyPlants are designed to serve a particular geographic segment of a market (e.g., Southeast Asia, East Asia)Individual plants produce most if not all of a companys products and supply a li

13、mited geographical areaSavings on shipping costs.Rapid delivery and response to local needs.Requires centralized coordination of decisions to add/delete plants, or to expand or downsize current plants due to changing market conditions Plant-A for A1Plant-B for A2Plant-? for An14Harcourt, Inc 1-1Mult

14、iple Plant Strategies Process plant strategyDifferent plants concentrate on different processesE.g. Automobile manufacturers often use this approach with different plants for Body Stamping, Engines, Transmissions, Radiators etc.Best suited to products that have numerous components Main Assembly Plan

15、t15Harcourt, Inc 1-1Evaluating Location Alternatives Locational Cost-Profit-Volume Analysis Factor Rating The Center of Gravity Method Transportation Model16Harcourt, Inc 1-1Locational Cost-Profit-Volume Analysis(a) plot the total cost lines for these locations on a single graph(b) identify the rang

16、e of outputs for which each alternative is superior (i.e., has the lowest total cost)(c) if expected output at the selected location is to be 8,000 units per year, which location would provide the lowest total cost?17Harcourt, Inc 1-1Locational Cost-Profit-Volume Analysis(a) plot the total cost line

17、s for these locations on a single graph(b) identify the range of outputs for which each alternative is superior (i.e., has the lowest total cost)(c) if expected output at the selected location is to be 8,000 units per year, which location would provide the lowest total cost?18Harcourt, Inc 1-1Locati

18、onal Cost-Profit-Volume Analysis Determine which location would yield the higher profit under these conditions.19Harcourt, Inc 1-1Factor Rating Example 2 Another analogue approachAnalytic Hierarchical Process (AHP)20Harcourt, Inc 1-1The Center of Gravity Method21Harcourt, Inc 1-1 Example 3: Assume t

19、hat the shipments from the new facility to each of the four destinations will be equal quantities (i.,e., Q1=Q2=Q3=Q4), determine the location of the new facility. 22Harcourt, Inc 1-1 Example 4: Assume that Q1=800, Q2=900, Q3=200, and Q4=100), determine the location of the new facility. 23Harcourt,

20、Inc 1-1The Transportation Model Information needed for a Transportation ModelList of sources (origins) and each ones capacityList of destinations and each ones demandUnit cost of shipping Sources can be factories, warehouses, departments, or other places from which goods are sent. Destinations can b

21、e factories, warehouses, departments, or other points that receive goods.D(demand)D(demand)D(demand)D(demand)S(supply)S(supply)S(supply)24Harcourt, Inc 1-1The Transportation ModelTransportation TableD(demand)D(demand)D(demand)D(demand)S(supply)S(supply)S(supply)njjmiids11Total Supply = Total Demand

22、25Harcourt, Inc 1-1Example 8S-126Harcourt, Inc 1-1Solving the Transportation Problem Using Excel (1)27Harcourt, Inc 1-1Solving the Transportation Problem Using Excel (2)28Harcourt, Inc 1-1Solving the Transportation Problem Using Lingo29Harcourt, Inc 1-1Problem 8S-3 (p.397)Total Supply (=500) Total Demand (=660) Insufficient Supply need to add a new factory Alternative Tahara (田原市) Alternative Okazaki (岡崎市)Determine which location would provide the lower transportation costs 30Harcourt, Inc 1-1Problem 8S-3 (p.397)Total Supply (=