Location

In: Business and Management

Submitted By harey
Words 989
Pages 4
Practice Problems: Location Strategies

Problem 1:

A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is looking at three possible locations. The factors, weights, and ratings being considered are given below:

| | Ratings | Factor | Weights | Peoria | Des Moines | Chicago | Nearness to markets | 20 | 4 | 7 | 5 | Labor cost | 5 | 8 | 8 | 4 | Taxes | 15 | 8 | 9 | 7 | Nearness to suppliers | 10 | 10 | 6 | 10 |

Which city should they choose?

Problem 2:

Balfour’s is considering building a plant in one of three possible locations. They have estimated the following parameters for each location:

Location | Fixed Cost | Variable Cost | Waco, Texas | $300,000 | $5.75 | Tijuana, Mexico | $800,000 | $2.75 | Fayetteville, Arkansas | $100,000 | $8.00 |

For what unit sales volume should they choose each location?

Problem 3:

Our main distribution center in Phoenix, AZ is due to be replaced with a much larger, more modern facility that can handle the tremendous needs that have developed with the city’s growth. Fresh produce travels to the seven store locations several times a day making site selection critical for efficient distribution. Using the data in the following table, determine the map coordinates for the proposed new distribution center.

Store Locations | Map Coordinates (x,y) | Truck Round Trips per Day | Mesa | (10,5) | 3 | Glendale | (3,8) | 3 | Camelback | (4,7) | 2 | Scottsdale | (15,10) | 6 | Apache Junction | (13,3) | 5 | Sun City | (1,12) | 3 | Pima | (5,5) | 10 |

Problem 4:

A company is planning on expanding and building a new plant in one of three countries in Middle or Eastern Europe. The general manager, Patricia Donegal, has decided to base her decision on six critical success factors: technology availability and support, availability and…...

Similar Documents

Location Strategy

...Chapter 8 Summary: Location Strategies Team #: 3 Team Members: Daniel Coughlin Joel Nemr Jennifer Ogle Operations Fundamentals Prof. Riaz Khan 63.501.201 Date: 04/11/2012 Location Strategies Strategic Importance of Location Overview As markets continually expand, the location of a business becomes increasingly important. Location choice can provide a company with distinct advantages. The ideal location should provide an overall maximum benefit to the company, factors considered vary depending on business type. Some businesses may realize the most benefit from maximizing revenue, while others may benefit most from reduced costs. Factors that may trigger a relocation need include changes in demand, production capacity limitations, labor productivity, exchange rates, costs, local attitudes, or changes in demographics. Location and Costs Location can cost up to 25% of a products selling price solely because of transportation costs. Other location factors may alter total operating expenses by up to 50%. These costs may be a result of taxes, wages, material costs, or rent/leases. Different locations have different costs associated with them. One location may have high operating costs, but cheap labor. Another may have expensive labor, but a good work ethic that benefits the overall productivity of the workforce. Location decisioning is worth investing in. Adding unnecessary costs to the creation of products will result in less overall revenue, or the...

Words: 2069 - Pages: 9

Event Location

...Deciding the best location for an event is critical to the event’s overall success, choosing a venue can be a daunting process especially as there are so many things to consider in the decision making process. In the case of Christina’s husband’s birthday party, using the information she provided me, was able to narrow down 3 (three) venues that best suits her needs, using the following as my deciding factor. Capacity: The number of guest that I was inviting, and the type of party I am planning is key e.g., 40th birthday party, buffet too help determine the size of the venue I require. Location: Making sure the location is easily accessible for the guest, putting in mind there are parking spaces, good transport links and accommodation nearby worked for me. Availability: Identifying several possible dates for the party, putting in mind if it was to be held at the weekend, some venues book up very far in advance, if I was working to a tight time scale I may to consider a week day. Budget= The budget would have a major impact on narrowing down a short list of venues, knowing what the budget is helps not to overstretch oneself on the venue in an effort to impress people, then find you have little left in the kitty to actually make the experience enjoyable for your guest, at this stage I wouldn’t know what the final costs one going to be but the venue will be able to give a rough picture figure per head for certain elements. It was after using the above to narrow the......

Words: 1143 - Pages: 5

Location

...land in Volusia County Florida is purchased, the business should be careful, otherwise you may be held liable for environmental hazards. A proper examination of the property is important. Also, the property must be purchased in those parts of Volusia County, where rafting is allowed by the local government. If there have been leaking underground oil storage tanks, hazardous emissions, or contamination, you as the new owner of the land, will be held responsible. The changes in the land that you need to carry out rafting business must have permission from the local, state, and federal regulations. Discuss Volusia County Florida location you will suggest to your client to run the business from, and why this location is advantageous relative to your discussion of real and personal property and the use of insurance. The Volusia County Florida location that I recommend is a property available very close to Gemini Springs County Park. This area is frequented by rafters and your business will not have problems getting customers during the value season, between September and March. All types of business related insurance discussed above are available at this place. The property is available free of encumbrances....

Words: 785 - Pages: 4

Location Based Services

...performance. Developing market strategies; maximizing return on investment for each channel used. * Drafting and maintenance of marketing performance reports * Working with marketing and finance teams for budget constraints and forecasts.Manager, Marketing, Zomato.com, India (www.zomato.com) April 2012 – March 2013 * Marketing activities for Zomato including Media planning/buying across platforms including TV, Radio, OOH, Print & Affiliate Marketing. * Designing and implementing Social Media & Digital Media strategies for Zomato.com on Facebook, Twitter, Instagram etc * SEO Optimization, Google Adwords and analyzing traffic trends for the various locations of Zomato.com * Creating Target based specialized marketing campaigns as per festive and seasonal trends * Conducting various BTL Activites including, Foodathons, Foodsprints & The Zomato Restaurant Summit. * Developed content and marketing strategy for the “Blenders Pride Zomato Connoisseurs’ Guide to Eating out” * International Expansion * Created the city plan and area wise demarcation for operations in Colombo. Help collected data and ultimately launch the city operations * Worked with the operations team in another International project , for the city launch of SharjahAssistant Store Manager, Just Cavalli, New Delhi ......

Words: 590 - Pages: 3

Favorite Location

...Favorite Location When I was growing up it was a family tradition to go on vacation once a year. I decided when I had kids, I would continue that tradition. One of my favorite places to visit was the Magic Kingdom in Orlando, Florida. This family vacation was my favorite, because all twelve of my family members when with us. It was one of the most memorable experiences of my life. What made it even more exciting were the expressions on my two son’s faces when they saw the characters for the first time. The car ride to Florida was very long, so we decided to make several stops at several roadside attractions, including museums and parks. The kids were starting to get board at the museums, so we made up a game and tried to make learning about the past fun and exciting. One of our stops was at South of the Border. Everyone bought a sombrero from the gift shop and then went on the big sombrero ride. I did not know we had to take a paddle boat to the park. I have a fear of boats so I held on to the pole in the middle of the boat. My sister and husband grabbed my son’s hands, so they did not get lost in the crowd. When the paddle boat began to move, I closed my eyes until we arrived at the other side of the lake where the Magic Kingdom was located. It only took about five minutes but it seemed longer to me. The Magic Kingdom was my favorite part of our vacation. As soon as we walked in through the gates, we heard all different Disney songs. While walking on......

Words: 423 - Pages: 2

Location Privacy

...2013 Privacy on Current Technological Devices “Location Privacy: Who Protects?” written by Caitlin D. Cottril is an objective educational essay published in URISA Journal’s 2011 Edition. A conference held on April of 2011 directed by Alasdair Allan and Pete Warden showed that some technological devices such as the Apple iPhone and the 3G iPad had the capability of saving user’s locations to a hidden file. This file called “Locationgate”, led to more research on other mobile telephones and “apps”, and conceded that an impressive amount of data regarding the location of user’s was being gathered and saved. (Cottrill, 1) This information is significant because it shows that mobile phone user’s location is being collected onto the spatial environment and therefore is no longer safe. In this essay the author informs her readers that people may watch them through their usage of technological gadgets, however, there are some methods, such as laws and legal issues, that protect people from violations of location privacy. The author’s arguments on the accessibility of user’s location, and the regulations about location privacy, and the method’s users can impliment in order to keep their personal information safe are all strong arguments supported by reliable examples, quotations, explanations, and factual data. “The author claims that apps can trace into people’s web habits, track their location, and examine their files. In addition, it is also stated that......

Words: 998 - Pages: 4

Social Location

...Emily Pee Mrs. Cook Intro. To Sociology August 26, 2014 Social Location A person’s social location can affect a person from the time they are born to the time they actually reach the social location they want to obtain for their adult life. Social location has a lot to do with what gender you are, what race you are and where you are born, how you were raised and if you choose to continue being the person your parents brought up. Social location also deals with a person’s emotional attachment to how society looks at them. Everyone wants to be able to fit into society, which doesn’t necessarily mean they want to be accepted by the world. As we grow up we meet new people, whether it be a family member, a friend, or just a stranger waiting in line behind you. How you feel about yourself and your social standpoint can affect your relationships and interaction with other people. When you are a child on the playground and you look around and notice all of the kids are somewhat bigger than you, you might feel like you don’t fit in. So, to get the attention of the bigger kids you decide to go down the big slide even though you have been afraid of it for some time. You get all the way to the top of the slide, and all the kids are watching you. Your heart starts to race as you realize how high up you actually are, but in your mind you can’t back out now because everyone is counting on you. You make your choice and go down the slide, the whole playground sees that you come......

Words: 742 - Pages: 3

Location

...Environmental regulations for the state of California are enforced by the California Environmental Protection Agency. The Cal/EPA enforces the state’s environmental protection laws that ensure clean air, clean water, clean soil, safe pesticides and waste recycling and reduction. If the rafting company wanted to open a location along the Merced River then the California Environmental Quality Act (CEQA) requires that an environmental report be prepared for any major project, which states the pros and cons of the project. Businesses are responsible for the effect their operations will have on water quality. The National Pollution Discharge Elimination System (NPDES) requires permits for anyone who intends to emit any pollutant into state surface waters, including noncontact cooling water and air-conditions or heat-pump water. Laws related to air pollution are controlled by the California Air Resources Board (CARB). The river-rafting business will need a permit because the patrons who want to use the river-rafting services will have to drive to the location. Indirect sources include roads and the emissions of heavy traffic drawn to certain business locations. The rafting company will have to comply will all applicable air pollution controls and they will have to consider the regulations on hazardous waste. California law affects firms storing less than 220 pounds or 27 gallons of waste on-site. The Federal Resource Conservation and Recovery Act require that the waste be......

Words: 503 - Pages: 3

Location Analysis

...Evaluating Location Alternatives Three techniques that are helpful in evaluating location alternatives: Locational cost-profit-volume analysis, factor rating, and center of gravity method. 1. LOCATIONAL COST-PROFIT-VOLUME ANALYSIS The economic comparison of location alternatives is facilitated by the use of cost-profit-volume analysis. The analysis can be done numerically or graphically. Procedure: 1. Determine the fixed and variable cost associated with each location alternative. 2. Plot the total-cost lines for all location alternatives on the same graph. 3. Determine which location will have the lowest total cost for the expected level of output. Alternatively, determine which location will have the highest profit. This method assumes the following: 1. Fixed costs are constant for the range of probable output 2. Variable costs are linear for the range of probable output. 3. The required level of output can be closely estimated. 4. Only one product is involved. For a cost analysis, compute the total cost for each location. Total cost=FC+V ×Q Where FC = Fixed cost V = Variable cost per unit Q = Quantity or volume of output Example1: Fixed and variable costs for four potential plant locations are shown below: Location | Fixed cost per year | Variable cost per unit | A | $250,000 | $11 | B | 100,000 | 30 | C | 150,000 | 20 | D | 200,000 | 35 | a. Plot the total-cost lines for these locations on a single......

Words: 1478 - Pages: 6

Ems Location

...EMERGENCY MEDICAL SERVICES (EMS) AMBULANCE LOCATION AND ALLOCATION WHAT TO SOLVE • To identifying the strategic locations for the EMS HOW MUCH CONTRIBUTE • An unexpected situation is always related to time, it had been serious for EMS ambulance location to guarantee an appropriate coverage and a quick response time. • It will help to solve problem in ambulance location • The percentage of number victim will be save will increases WHY TO SOLVE • Many cases of death or permanent disability in Malaysia due to the traffic jams and the location of an ambulance away from the emergency site and cause an ambulance arrived late at that site. • Furthermore, the death may occur if the response time is longest PROJECT CHARTER Business Case • There are some problem would be happening the city such as traffic congestions and the routes for the ambulances became poor. • The patients will experienced a long waiting time due to lateness of ambulance. • The death may occur if the response time is longest. Opportunity Statement • It will help the ambulance’s crew to cover as much area as possible within a distance standard by maximizing the number of ambulance at specific location. • It may reduce the number of deaths and also decrease the number of suffering people that involved at the emergency sites Goal Statement • Identifying the strategic locations for the EMS ambulances. • To improve the quality of the EMS ambulances Project......

Words: 259 - Pages: 2

Location Location

...The key factors in the location decision for a bricks-and-mortar business are: * Customer accessibility * As a matter of access by target customers * As a matter of customer convenience * As a necessity to avoid shipping costs * Environmental business conditions * Climate-related factors * Business environment factors (competitors, legal requirements, and tax structure) * Resource availability * Nearness to raw materials * Availability of a suitable labour supply * Access to adequate and reliable transportation * Personal preference of the Entrepreneur * Familiarity with home community * Familiarity of community with entrepreneur * Site availability and Costs * Difficulty of locating a good site * Large costs for and commitment required to purchase site outright * Leasing avoids a large cash outlay and allows the owners to postpone committing to the site Alchemy Pickle Company was founded in 2012 in Toronto to make vegetable ferments and natural sodas and kombucha. Its products are kimchi, sauerkrauts, pickles, fermented hot sauce and condiments, and beverages with local organic produce from Southern Ontario. Alchemy Pickle Company has successfully combined uniqueness of products with local food economy and its products are currently sold in 3 farmers markets and 9 retail stores in Toronto. Extensive life experiences from working in hospitality, customer......

Words: 506 - Pages: 3

The Location of Culture

...The Location of Culture, by Homi K. Bhabha; 285 pp. New York: Routledge, 1994, $49.95. This book assembles several of Homi Bhabha's most significant essays, allowing for an examination of his contribution to contemporary literary theory. As a self-described postcolonial critic, often compared with Edward Said or Gayatri Spivak, Bhabha is perhaps most well-known for his theory of cultural hybridity, which he develops in "Signs Taken For Wonders" and several other essays included in this collection. Bhabha argues that hybridity results from various forms of colonization, which lead to cultural collisions and interchanges. In the attempt to assert colonial power in order to create anglicized subjects, "[t]he trace of what is disavowed is not repressed but repeated as something different--a mutation, a hybrid" (p. 111). This hybrid trace contradicts both the attempt to fix and control indigenous cultures and the illusion of cultural isolation or purity. His project thus adapts poststructuralist challenges to stable or fixed identities, attempting to "rename" postmodernism from a postcolonial perspective (p. 175), and allowing sustained attention to the ways in which race, gender, community, and nationality converge. One of his major contributions to theories of cultural production and identity is that he examines these various intersections closely, and avoids simply listing them or elevating one aspect of his analysis over others. Eight of the twelve chapters in this volume have...

Words: 1233 - Pages: 5

Business Location

...“Location, location, location.” This phrase was coined by Lord Harold Samuel, in 1987 (Who conined). Although this phrase was referring to how important location is to real estate, this phrase is often used in business. The physical location is a key factor in determining whether a business will succeed, or fail. A few questions potential business owners have to answer are: Is location important for the success of my business, and what type of location is best for my business? Many business owners have to contemplate whether, or not, going overseas is the best fit for the product, or service, they plan on providing. When embarking into new territory, there is much uncertainty, and there are many risks associated. Before developing a presence in an international market, business owners must understand the culture, customs, and the risks related with the foreign market. There are many factors that can affect location decisions. However, selecting a location is becoming more challenging due to the increase in globalization in the workplace. Many firms consider embarking in business ventures outside their home country. Location decisions are not just within national borders, but surpass over international borders. There are key factors in achieving competitive advantage in foreign markets. Some key factors that should be considered before engaging in international business are: • Political risks and values • Economic issues: exchange rates and currency risks • Cultural......

Words: 1128 - Pages: 5

Social Location

...Kelitta Bastos Costa Carney Maley WSG100: Women and Society 03/11/16 Personal Narrative Essay According to the Merriam-Webster dictionary the word identity means “who someone is; the qualities, beliefs, etc., that make a particular person or group different from others”. To me, social location is much like someone’s identity, it defines who a person is. The four main aspects of my social location in which defines me is my gender, sex, culture and class. At first, I did not know that my gender had nothing to do with my biological sex. Before I took this course, the term gender to me implied that someone was either male or female, which I now realize is a very common, but quite ignorant misconception. I was born a female and I identify as that to this day. I have come to realize in only a few short months that my gender and how I perform it is not entirely what some would consider feminine, but it is not masculine either. I like makeup and I am not really athletic. However, I am very strong willed and consider myself a leader; qualities most would describe as masculine. I believe this has a lot to do with my culture and class. I was brought up with the teachings that because I was a female from a lower class family I had to be smart and strong willed in order to make a difference in my community. I am from South America and almost every country there teaches their children that if you are poor the only way you will make it out of the slums is if you fight for yourself,......

Words: 892 - Pages: 4

Marketing Location

...Market Location Tactics When we mention about Market location tactics, there is a question that what is better between focusing on the tactic with strong aim to compete with the competitors or the tactic that they can satisfy a less sought-after but also profitable segment of the market by emphasizing on a niche? Market location is an important business tactics that encourage us to know where to compete. It can be said that, the target market the firm aims at when the business strategies are applied. In business operation, it is a normal situation that we can find several companies who offer the same products or services. Consequently, there is unequal status of the companies in the market regarding market share. There are firms that operate only on the fringes and not in the mainstream markets while a few others have a small market share, some other firms have relatively larger market share, and one firm has the largest market share There are four types of market location on the basis of the role that firms plays in the target including: leader, challenger, follower and niches. The second, third or lower ranking in the industry are Market leader. However, the small companies may decide to challenge the market leader or decide to follow them. Rungrot Company has the aim to increase the market share and the company can attack its competitors by using a strategy. * Encirclement Attack: To capture the opponent’s market share is necessary to depend on encirclement attack......

Words: 413 - Pages: 2