Explain the need for suitable location 17:55 | 1.4MB/s O70 ):Find..maximize gains. identiryıng an ideai Iocation is very cruciai, it snouid alwaysmaximize the net advantage, must minimize the unit cost of production anddistribution. Plant location decisions are very important because once the plant islocated at a particular site then the organization has to face the pros and cons of thatinitial decision (myventurepad, n.d.).Lesson 2. The Need for Selecting a Suitable Location(Kumar & Suresh, 2008)The need for selecting a suitable location arises because of three situations:I.When starting a new organizationII.In case of existing organizationI.In case of globalizationI.In case of Location Choice for the First Time or New OrganizationFactors to be considered:1. Identification of regionThe organizational objectives along with the various long-termconsiderations about marketing, technology, internal organizationalstrengths and weaknesses, region-specific resources and business26environment, legal-governmental environment, social environment andgeographical environment suggest a suitable region for locating theoperations facility.2. Choice of a site within a regionOnce the suitable region is identified, the next step ischoosing the best site from an available set. Choice of a site isless dependent on the organization's long-term strategies.Evaluation of alternative sites for their tangible and intangiblecosts will resolve facilities-location problem.3. Dimensional analysisSince both tangible and intangible costs need to beconsidered for a selection of a site, dimensional analysis isused. Dimensional analysis consists in computing the relativemerits (cost ratio) for each of the cost items for two alternativesites.The existing firms will seek new locations in order to expand thecapacity or to place the existing facilities. When the demand for productincreases, it will give rise to following decisions:Whether to expand the existing capacity and facilities;Whether to look for new locations for additional facilities:

Location planning is one of the important aspects for any organization or business unit in case of a…

Answered: Explain the need for suitable location

Explain the need for suitable location

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

Similar questions

What kind of location measure technique will be appropriate for you to keep track of continuous location information?
Respond to the following statement: "The importance of location is frequently greatly exaggerated; the fact that almost every type of business is located in every region of the country indicates that locating a suitable location should be effortless.
Identify and clarify seven key factors affecting decision on the location?
Use the photo attached to answer the following question, 1.Using the centre of gravity location technique, determine the best location that will minimize total travel distance. SHOW WORKING
What major issues should be considered when determining a retail site location?
Describe the procedure for locating a facility.
Discuss the two most important factors in the site selection. Convenience and Cost
What information do you need in order to give the absolute location of a place
Briefly explain what is location service facilities?
Problem 8-10 Factor Initial cost Traffic Maintenance Dock space Neighborhood Location East #1 East #2 West Weight East #1 100 60 20 24 15 0 00 00 N West East #1 East #2 8 8 4 4 2 East #2 110 35 25 24 9 a. Using the above factor ratings, calculate the composite score for each location. West 110 35 Composite Score 25 13 11 b. Determine which location has the highest composite score:
What major issues should be considered when determining a retail site location