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In: Operations Management

When Managing Quality—why is selecting a facility location becoming much more complex? Please elaborate on the...

  1. When Managing Quality—why is selecting a facility location becoming much more complex? Please elaborate on the following:
    1. Shipping (transport)
    2. capital ($ funding)
    3. labor (workforce)

Solutions

Expert Solution

Shipping: The location determines the distance between the market and production. Hence, the complexity of the roadways or ways to transport, the cost of it are part of it. All these make the location for the logistics or shipping.

Capital: The cost or the capital needed for transporting the goods between the markets from the production facility is a big issue to calculate the profitability of the business. Hence the cost and the capability of a good and well-devised plan are best placed to make arrangements for the same for a business in logistics based on the location of the plant.

Labor: The skilled people for the business are its biggest resource. The location of the production has to be accessible and have the necessary elements that would draw the best talents for the business. Hence this aspect of location is huge for the selection and recruitment of the labor force or the human capital.

keosha answered 10 months ago
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