EBK OPERATIONS MANAGEMENT
11th Edition
ISBN: 8220103630726
Author: RENDER
Publisher: PEARSON
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Question
Chapter 8, Problem 1DQ
Summary Introduction
To explain: How the location of Company FX is a competitive advantage.
Expert Solution & Answer
Explanation of Solution
Ways the location of Company FX is a competitive advantage:
The Company FX has a “hub and spoke” business concept, where the hub Memphis (in Tennessee) is shown in the map.
The hub is selected in the middle of the country. A specific city Memphis is chosen because of the weather and climate, which allows easy takeoffs and landings of aircrafts throughout the year. The hub allows all parcels to be sorted at a central place, so that parcels from different locations arrive at the hub and are sent to different destinations from the hub for overnight delivery. The overall costs of the operations are kept low and the operations are efficient, when such a location decision is taken.
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Chapter 8 Solutions
EBK OPERATIONS MANAGEMENT
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