5.0 Learning Outcomes
Learning Objectives
At the end of this chapter, students will be able to:
- Explain the strategic importance of facility location decisions and their long-term implications on an organization’s profitability and competitiveness.
- Analyze the key factors influencing facility location decisions, including proximity to raw materials, labour considerations, transportation infrastructure, utility costs, tax incentives, customer proximity, and community factors.
- Differentiate the location decision factors for manufacturing and service organizations, recognizing each industry’s unique priorities and considerations.
- Apply quantitative methods, such as the Location Factor Rating (Weighted Scoring Model) and the Centre of Gravity method, to evaluate and compare potential facility locations based on specific operational requirements and strategic objectives.
- Assess the impact of e-commerce and web-based retail industries on facility location decisions, particularly for service-oriented companies.
- Develop a comprehensive facility location strategy that aligns with the organization’s objectives, optimizes operational efficiency, minimizes costs, and enhances responsiveness to customer demands.
