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19 Cards in this Set
- Front
- Back
What are regional factors that are related to location planning? |
costs associated with inputs costs associated with outputs |
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What are costs associated with inputs? |
raw materials labor |
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What are costs associated with outputs? |
shipping expenses convenience to customer |
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What are three examples of site related factors? |
(1) taxes (2) regulations (3) resource availability |
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What is cost versus volume analysis? |
this is a technique for locating a production facility. |
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What are the three requirements for cost versus volume analysis? |
(1) the facility must have fixed costs that do not vary with output level (2) the facility must have linear variable costs. (3) the facility only makes one product. |
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What is an example of nonlinearity of variable costs? |
overtime |
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What is one way to get around the facility only making one product requirement? |
aggregate planning, or aggregating everything into one measure |
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What is the point of indifference? |
the point where preference changes |
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How can one calculate the points of indifference? |
Create a costs formula for both locations and set the formulas equal to each other and solve for quantity. |
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the center of gravity method is a technique for... |
locating a distribution center |
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What does port linearity occur? |
when one is passing through international borders. |
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What is the main requirement for center of gravity? |
the facility must have distribution costs which are a linear function of distance and quantity shipped. |
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what does having a distribution cost that are linear function of distance and quantity mean? |
if you are shipping one thing twice as far as something else, it will cost just as much |
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What are the steps of the center of gravity method? |
(1) determine the coordinates of your destinations (2) determine the coordinates of the distribution center |
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Center of gravity rarely grants you with an exact spot, but instead.. |
suggests an area in which you can further research |
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How does one determine the coordinates of the distribution center? |
if the quantities to be shipped to each are the same, then just average the coordinated if the quantities vary, you should find the weighted average of the destination coordinates by multiplying the coordinate by quantity, adding them up, and dividing it by price. |
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What is the most adaptable location planning technique that works for everything? |
factor rating method. |
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With the factor rating score, the ____ score is always more favorable |
higher |