What is the most important factor when locating a manufacturing facility quizlet?

What is the most important factor when locating a manufacturing facility quizlet?

An important factor for locating new manufacturing plants​ is: favorable labor climate.

What is often the reason that vendors locate near their major customers?

What is often the reason that vendors locate near their major customers? Transportation cost. Cost of labor is the overriding factor.

What is the major difference between location decision in the service sector and in the manufacturing center?

What is the major difference in focus between location decision in the service sector and in the manufacturing center? The focus in service is revenue maximization, while the focus in manufacturing is cost minimization.

Which of the following is a location analysis technique typically employed by a manufacturing organization?

Location analysis techniques typically employed by service organizations include: the factor rating method. the center-of-gravity method. purchasing power analysis of area.

What is the most important factor when locating a manufacturing facility?

o Location to Raw Materials: The three most important reasons for a firm to locate in a particular region includes raw materials, perishability, and transportation cost.

Which of the following is the most important factor in determining location of a facility?

What is the most important factor in locating service or retail facilities? Is proximity to customers. Are construction cost important to retail or service facilities? No, it’s less important even though land or leasing costs can be high.

How important are location decisions in operations management?

The location decision has a direct effect on an operation’s costs as well as its ability to serve customers (and therefore its revenues). Also, location decisions, once made, are difficult and costly to undo. The costs of moving an operation are often significant and run the risk of inconveniencing customers and staff.

Why is it important to choose a strategic location when it comes to expanding or relocating a facility?

Relocating and expanding business to a new location helps in reducing the overhead, increasing operating capital, reduce taxes, while at the same time it also provides businesses access to new consumer segment which in turn lead towards boosting overall business revenues.

What are the three main factors that affect the decision of where to locate production?

o Location to Raw Materials: The three most important reasons for a firm to locate in a particular region includes raw materials, perishability, and transportation cost. This often depends on what business the firm is in.

What is the importance of facility location?

Facility location is a crucial element in the supply chain and has a great impact on the efficiency of numerous logistics activities. Facility locations involve numerous aspects, such as the location of manufacturing plants, assembly locations as well as distribution centres.

Why do you need a location for a manufacturing facility?

It is also needed toidentify proximity the sources of raw materials and transportation facilities. A facility should ideally be located at a place where raw materials are available. This is necessary for maintaining continuity in the production process. 3. Concept of Facility Location Factors Affecting Facility Location Decisions

Which is the most important factor of production?

This, in turn, allows consumers to earn more for their labor services and to pay less for existing goods. Land and labor are the earliest factors of production; humans have always mixed their labor with land and natural resources. Income from land and labor are called rent and wages, respectively.

What should be the location of a retail business?

For most retail businesses, foot traffic is extremely important. You don’t want to be tucked away in a corner where shoppers are likely to bypass you, and even the best retail areas have dead spots. By contrast, if your business requires confidentiality, you may not want to be located in a high-traffic area.

Who is responsible for the production of a good?

Labor consists of the people that are responsible for the production of a good, including factory workers, managers, salespeople, and the engineers that designed the machinery used in production.