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1、Contemporary LogisticsTwelfth EditionChapter 9Family LocationContemporary LogisticsTwelfth Learning Objectives (1 of 2)9.1 To examine the strategic importance of facility location9.2 To explain the general process of determining the optimum number of facilities9.3 To describe the major factors that

2、influence facility location9.4 To examine a sites specialized location characteristics Learning Objectives (1 of 2)9.Learning Objectives (2 of 2)9.5 To explain location decisions using simple grid systems9.6 To learn about facility relocation and facility closingLearning Objectives (2 of 2)9.Facilit

3、y LocationFacility location Refers to choosing the locations for distribution centers, warehouses, and production facilities to facilitate logistical effectiveness and efficiencyFacility LocationFacility locaThe Strategic Importance of Facility Location (1 of 3)Factors that can influence facility lo

4、cation decisions include:Cost considerationsConsumers sensitized to buy only when prices are lowLow price/low cost framework led companies to operate in countries with low-cost laborIn recent years, organizations are reexamining the low-cost labor paradigm The Strategic Importance of FThe Strategic

5、Importance of Facility Location (2 of 3)Factors that can influence facility location decisions include:Customer service expectationsExpectations continue to increase over timeCustomers looking for faster and more reliable order cyclesThe Strategic Importance of FaThe Strategic Importance of Facility

6、 Location (3 of 3)Factors that can influence facility location decisions include:Location of customer or supply marketsPopulation shiftEconomic growthSustainabilityThe Strategic Importance of FaTable 9.1: Five Most Populous States in the United States1970, 1990, and 2014Rank1970199020141CaliforniaCa

7、liforniaCalifornia2New YorkNew YorkTexas3PennsylvaniaTexasFlorida4IllinoisPennsylvaniaNew York5TexasIllinoisIllinoisSource: Derived from data at and Table 9.1: Five Most Populous Determining the Number of FacilitiesFacilities are generally added when service levels become unacceptableSoftware packag

8、es exist to help in determining the number and location of facilitiesKey issuetime it takes to get from facility to majority of the U.S. (or target) populationMoving from 1 to 3 facilities saves 1 day lead timeMoving from 3 to 10 facilities saves day lead time11Determining the Number of FaciFigure 9

9、.1: Chicago Consultings 10 Best Warehouse NetworksSource: Courtesy of Terry Harris, Managing Partner of Chicago Consulting.Figure 9.1: Chicago ConsultingGeneral Factors Influencing Facility Location (1 of 7)Influences on location of manufacturing, processing, or assembly facilityRaw materialsCompone

10、nt partsLaborMarketsLocation of warehouses, distribution centers, and cross-docking facilities are influenced by locations of plants whose products they handle and markets they serveGeneral Factors Influencing FaGeneral Factors Influencing Facility Location (2 of 7)Natural resourcesPure materialsWei

11、ght-losing productsWeight-gaining productsPopulation characteristicsmarket for goodsPopulation characteristicslabor MaquiladoraSweatshops Right-to-work lawsExpatriate workersGeneral Factors Influencing FaGeneral Factors Influencing Facility Location (3 of 7)Taxes and incentivesInventory taxIncentive

12、 packagesTransportation considerationsAvailabilityRefers to the number of transportation modes (intermodal competition) andThe number of carriers within each mode (intramodal competition)CostGeneral Factors Influencing FaFigure 9.2: Truck Distances from NebraskaSource: Reprinted with permission from

13、 Inbound Logistics magazine (September 2011). /subscribe. Copyright Inbound Logistics 2014.Figure 9.2: Truck Distances frGeneral Factors Influencing Facility Location (4 of 7)Proximity to industry clustersAgglomeration concept, better known today as the industry cluster conceptDiffer in shape and si

14、zeOne type focused on a particular industryAnother type offers organizations proximity to key suppliersCatalyst in the development of supplier parksGeneral Factors Influencing FaGeneral Factors Influencing Facility Location (5 of 7)Trade patternsCommodity flow data studied to determine changes occur

15、ring in the movement of raw materials and semiprocessed goodsHow much is being produced?Where is it being shipped?Trade agreements (e.g., NAFTA)General Factors Influencing FaGeneral Factors Influencing Facility Location (6 of 7)Quality-of-life considerationsCost of livingEducational opportunitiesCri

16、me ratesEmployment opportunitiesWeatherCultural amenitiesOthersGeneral Factors Influencing FaGeneral Factors Influencing Facility Location (7 of 7)Locating in other countriesRelevant legal systemPolitical stabilityBureaucratic red tapeCorruptionProtectionismNationalismPrivatizationExpropriation (con

17、fiscation)Treaties and trade agreementsGeneral Factors Influencing FaSpecialized Location Characteristics (1 of 4)Current zoning of the landThere may be limits on how the land can be usedLocal unionsHave areas of jurisdictionFirms labor relations manager may have distinct preferences with which loca

18、ls they are willing to workDifferent supplemental agreements provide companies with differing levels of managerial flexibility (or inflexibility)Specialized Location CharacterSpecialized Location Characteristics (2 of 4)Title searchMay be needed to make sure a parcel of land can be sold and that the

19、re are no liens against itEngineers examine site for proper drainage and to determine load-bearing characteristics of the soilDue diligence of environmental factorsBrownfieldsPreviously used sites that contain chemicals or other types of industrial wasteSpecialized Location CharacterSpecialized Loca

20、tion Characteristics (3 of 4)Free Trade ZoneHighly specialized sites in which to locateAlso known as:Foreign trade zonesExport processing zonesSpecial economic zonesNondomestic merchandise may be stored, exhibited, processed, or used in manufacturing operations without being subjected to duties and

21、quotas until the goods or their products enter the customs territory of the zone countrySpecialized Location CharacterSpecialized Location Characteristics (4 of 4)Free trade zoneHave become extremely popular in recent yearsOften located at, or near, water ports, although they can also be located at,

22、 or near, airportsFree trade subzones refer to specific locations at an existing free trade zoneParticularly popular with automotive manufacturersSpecialized Location CharacterFigure 9.3: Example of Transportation Forces Dictating Plant LocationAdapted from Alfred Weber, Theory of the Location of In

23、dustries, translated by Carl J. Friedrich (Chicago: University of Chicago Press, 1929).Figure 9.3: Example of TranspoFinding the Lowest-Cost Location Using Grid SystemsGrid systemsAllow one to analyze spatial relationships with mathematical toolsCheckerboard patternsPlaced so that they coincide with

24、 northsouth and eastwest line on a mapFinding the Lowest-Cost LocatiFigure 9.4: Center-of-Gravity Location for a Warehouse Serving Five Retail StoresFigure 9.4: Center-of-Gravity Table 9.2: Weighted Center-of-Gravity ExampleStoreNorthLocationEastLocationMonthlyVolume (tons)North VolumeEast Volume131

25、3(3 3) = 9(1 3) = 32335(3 5) = 15(3 5) = 153244(2 4) = 8(4 4) = 164122(1 2) = 2(2 2) = 45366(3 6) = 18(6 6) = 36Totalblankblank205274Weighted averageblankblankblank2.63.7Table 9.2: Weighted Center-of-Facility Relocation and Facility Closing (1 of 5)Two specialized situations regarding location choic

26、eFacility relocationAssociated with business growthFacility closingAssociated with business contractionFacility Relocation and FaciliFacility Relocation and Facility Closing (2 of 5)Facility relocation Occurs when a firm decides that it can no longer continue operations in its present facility and m

27、ust move operations to another facility to better serve suppliers or customersCommon reason for facility relocationLack of room for expansion at current siteFacility Relocation and FaciliFacility Relocation and Facility Closing (3 of 5)Facility relocation Decision involves a comparison of the advant

28、ages and disadvantages of a new site to the advantages and disadvantages of an existing locationMust also consider the potential consequences of relocation on their human resources (consequences that may not be easily quantified)Must keep current employees informedMust be prepared for unplanned glit

29、ches during transition to prevent customer service issuesFacility Relocation and FaciliFacility Relocation and Facility Closing (4 of 5)Facility closing Occurs when a company decides to discontinue operations at a current site because the operations may no longer be needed or can by absorbed by other facilitiesExamples leading to facility closure include:Eliminating redundant capacity

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