Term
Importance of the location decision:
what is affected by the location of your facilities ? |
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Definition
| Supply chain costs and revenues |
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Term
| Manufacturing, service, warehousing, retail |
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Definition
Transportation costs
Labor, material, and energy costs
Service levels
Access to customers
Facility and land costs |
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Term
Importance of the location decision:
a strategic decision |
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Definition
| acquiring and maintaining a physical location |
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Term
| Global location strategies |
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Definition
Offshore Factory
Source Factory
Server Factory
Contributor Factory
Outpost factory
Lead Factory |
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Term
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Definition
| manufactures products at low cost with minimal technical and managerial resources |
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Term
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Definition
| manufactures products at low cost but with skilled workers and significant managerial resources |
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Term
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Definition
| factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs |
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Term
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Definition
| focused on product development and engineering for products that they manufacturer |
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Term
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Definition
| factory set up in an area with an abundance of advance supplier, competitors, research facilities, etc. |
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Term
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Definition
| source of product and process innovation and competitive advantage across the entire organization (world-class) |
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Term
| Global Market and Country Selection (location decision) |
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Definition
Trade Agreements and Policies
Nation Competitiveness
Top 3: Switzerland, U.S., and Singapore
Government taxes and Incentives
Currency Stability
Sub-region or state selection |
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Term
| Trade Agreement and Policies |
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Definition
World trade organizations
NAFTA, EU, Southern Common Market (MERCOSUR) |
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Term
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Definition
Economic Performance
Government efficiency
Business efficiency
Infrastructure |
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Term
| Government Taxes and Incentives |
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Definition
| Tariffs (federal tax) design to protect local businesses |
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Term
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Definition
| Hedge strategies to protect against currency fluctuations |
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Term
| Sub-region or State selection |
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Definition
Environmental issues
Access and proximity to Markets
Right to work laws
Access to Suppliers |
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Term
| Two facility location techniques |
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Definition
Weighted factor rating model
The Break-Even Model |
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Term
| Weighted factor rating model |
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Definition
-access to markets, labor issues, access to suppliers, utility availability (costs), QOL, right-to-work, land, etc.
-criteria are weighted
-criteria are measured
-multiply the measures by the weights |
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