Supply network design - Where should an operation be located?

5 important questions on Supply network design - Where should an operation be located?

The aim of the location decision is to achieve an appropriate balance between three related objectives:

1)The geographical location costs of the operation
2)the service the operation is able to provide to its customers
3)the revenue potential of the operation

Name the demand side influences on location.

1) Labour skills
2)the Suitability of the side itself

Name the 5 supply side influences on location

1) Labour costs
2) Land costs
3) Energy costs
4) Transportation costs
5) community factors
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The centre of gravity approach looks for?

the location which minimizes transportation costs

Name two reasons for relocation.

  1. Change in demand
  2. Change in supply

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