ed by a team of managers inst at types of teams are suggested as being helpful t
ID: 397497 • Letter: E
Question
ed by a team of managers inst at types of teams are suggested as being helpful to the tas 5. What are the major locational determinants, and how does each affe 6. What is the difference between a regional/national location decision 7. Discuss the role of logistics variables in the decision as to where to lo 8. What are the principal types of modeling techniques that apply to the t 4. Why are most location decisions analyz person? Wh network redesign? decision? do the determinants of each differ? distribution center. network design and facility location? What are the strengths and limita a decision? What are its strengths and limitations? 10. Using the grid technique, determine the least-cost location for the f TONS 200 300 100 100 RATE 0.50 0.60 1.00 2.00 GRID COORDINATE 2, 14 6, 10Explanation / Answer
4.
Location decision in the logistic network design process faces the transportation cost, economies of scale, logistic channel decision, etc. These are all have the competitive advantages. They are the decisions which needs the key strategic policies and norms followed by the company. Hence, Manager is the one who is taking care of strategy making or decision-making processes. They work as the communicator between team and the higher officials. They are the part of the policy maker.
The logistic team makes the plan of the design of plants and warehouses and these are approved by the manager first. The logistic team having the experience in dealing with the small elements of the network redesigning process. This team also have to test the various locations within the company. Apart from this team there are teams such as Finance, Production, Marketing, Human Resource are also very important un the process.
5. The major locational determinants are as follows:
1. Labour Climate
2. Transportation services
3. Proximity of market and customers
4. Quality of Life
5. Taxes regime
6. Government norms
7. Supplier Networks
8. Cost of the Land and other utilities.
9. Company preference and norms.
10. Industry regulations
Each affects the decision making in its own way. For example, Labour climate is the cost for the labour to work. This is important for the production of the company supply chain network. The availability of the Labour is a big issue. The location should have geographical accessibility so as the transportation cost would be reduced. This affects the decision making as the cost associated with the place. The Market should be nearby or reach to the logistics as this increase’s the transportation cost. The number of customer firms within the market areas are large then there would be the greater the competitive advantage of location. The mobility of the work force either professional or technical has to attract by the company. Government rules, Taxes norms, Industry regulations all should be known in prior otherwise enhances the cost to the business.
All the facts are important and affects the decision making as they help in the making the process efficient and effective which leads to the productivity.
6.
The National and Regional location decision differs in the geographic locations, tax regimes, governmental influences, land costs, Labour climate, transportation services, Quality of life etc. The determinant of each do not differs. The difference is only in their coverage view narrow and broader.
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