When it comes to making decisions on location for supply chain management, it is important to consider market demands and determining customer satisfaction. Calculated decisions must concentrate on the position of stocking and distribution locations, manufacturing plants, and positioning them in key areas that the market provides for.
It is important to know what the market demand is in that particular area and how fast the product(s) can be moved the locations desired. For instance, if surf boards won’t be have a high market demand in the Midwest, but in California there would be a high demand in that market, which supply chains could position themselves to meet the demand of its customers. After customer markets are set, there must be continued dedication to find stocking locations and production as near to the consumer as possible. When facilities are not as close to the consumer, the consumer would use other means of purchase, such as online or second hand, but when these goods are readily …show more content…
The organization must identify the community and the people that they are planning to build in, so they know what products are affordable for these people, and at the same time taking their operation costs in account. “There are many important factors for deciding upon the community in which move a business. They include facilities for education, shopping, recreation and transportation among many others. From a business standpoint these factors include utilities, taxes, and environmental regulation. (Author Unknown).” All of these components are what an organization needs to take into account when looking at market demand because they can have too much product, the wrong product, or not enough product and this all can affect the organization’s profit
It is important to know what the market demand is in that particular area and how fast the product(s) can be moved the locations desired. For instance, if surf boards won’t be have a high market demand in the Midwest, but in California there would be a high demand in that market, which supply chains could position themselves to meet the demand of its customers. After customer markets are set, there must be continued dedication to find stocking locations and production as near to the consumer as possible. When facilities are not as close to the consumer, the consumer would use other means of purchase, such as online or second hand, but when these goods are readily …show more content…
The organization must identify the community and the people that they are planning to build in, so they know what products are affordable for these people, and at the same time taking their operation costs in account. “There are many important factors for deciding upon the community in which move a business. They include facilities for education, shopping, recreation and transportation among many others. From a business standpoint these factors include utilities, taxes, and environmental regulation. (Author Unknown).” All of these components are what an organization needs to take into account when looking at market demand because they can have too much product, the wrong product, or not enough product and this all can affect the organization’s profit