Service Facility Location
These course notes are for use in conjunction with Learning Module 6 of MG 476 - Services Management.
Menu for Learning Module 6
Where should a plant or service facility be located? This is a top question on the strategic agenda of contemporary manufacturing and service firms, particularly in this age of global markets and global production. Dramatic changes in communication technology have made the world truly a "global village," allowing companies greater flexibility in their location choices. In practice, however, the question of location is very much linked to two competitive imperatives:
1. The need to produce close to the customer due to time-based competition, trade agreements, and shipping costs.
2. The need to locate near the appropriate labor pool to take advantage of low wage costs and/or high technical skills.
The problem of facility location is common to new and existing businesses. This planning is critical to a company's eventual success. For instance, 3M has moved a significant part of its corporate activity, including R & D, to the more temperate climate of Austin, Texas. Toys "R" Us has opened a new location in Japan as a part of its global strategy.
Manufacturing and service companies' location decisions are guided by a variety of criteria defined by competitive imperatives. Criteria that influence location planning (primarily based on manufacturing plant and warehouse needs) are discussed below.
A location close to the customer is important because of the ever-increasing need to be customer-responsive. This enables faster delivery of goods to customers. In addition, it ensures that customers' needs are incorporated into the products being developed and built. Population characteristics provide a basis for decision making on these criteria.
Examples:
UPS
http://www.ups.com/about/contact.html
I think that UPS uses the proximity to customers within their organization. UPS has
several drop-off and pick-up sites throughout each city. This provides customers with many
options as far as their packages are concerned. These sites are usually in places of
business that are frequently visited by consumers. For instance, in Emporia, UPS has a
site at the local drug store. This is convenient because the drug store has several
locations throughout Emporia. This particular part of UPSĘs web site shows addresses that
correspond with their headquarters and customer service. With the addition of the Internet
site, UPS has also made itself closer to their customers because people can now track
their packages over the Internet. Overall, UPS has succeeded in getting close enough to
the customer to make themselves profitable.
Jeff Albers
United Parcel Service of America: http://www.ups.com/
The UPS I feel uses the proximity to customers well. The company has
numerous stores and places which uses its services around the world. They guarantee their
services by certain days. Because of their ability to be close to customers, it enables
them to give fast, efficient deliveries. The customers are now able to watch where their
package is at all times. By using their tracking system on the internet, which gives the
customer another service that is provided by UPS.
Derrek Harter
PIZZA HUT
http://www.orderpizzahut.com/
Pizza Hut utilizes proximity to customers very well. They have dine-in
as well as carryout/pick-up only locations. Pizza Hut also allows
customers to order on-line. This allows customers to speed up the
delivery process in recieving their orders more quickly. Pizza Hut also
guarantees that if you don't get your delivery within 30 minutes, it's
free.
Nikki Jones
The Wal-Mart company offers a store locator at www.wal-mart.com
I found 90 locations within 100 miles of my home address. Wal-Mart is a household name,
they offer low prices and convenient locations. I think the Wal-Mart organization
understands several of the issues in facility locations, but most importantly they know
they need to have a store that is convenient to the market they are serving. (proximity to
the customer) The store locator is easy to use and gives specific information with a
detailed map, street address and telephone number.
The company has also gone global with expansion into Germany with 21 Wal-Mart stores,
China with 2 Wal-Mart stores and 1 Sam's store, Argentina with 8 Wal-Mart stores and 2
Sams stores, Brazil with 5 Wal-mart stores and 3 Sams stores, Canada with 144 Wal-Mart
stores, Mexico with 27 Wal-Mart stores and 28 Sams stores and Puerto Rico with 9 Wal-Mart
stores and 5 Sams stores.
I think Wal-Mart is a prime example of the proximity to customer issue. They have to move
large volumes of inventory to maintain profit margins and are able to do this by building
stores that are convenient for their customers use.
Mary Yewell
McDonald's
http://www.mcdonalds.com/
McDonald's franchises business and opportunity to individuals who are interested in
running a McDonald's. Before a McDonald's is added in a certain area, they evaluate the
labor pool, traffic patterns and potential costs and profits of community.
McDonald's focuses on Proximity to Customers. In order to get the type of sales they have
to be close to traffic and potential consumers. Emporia currently has three successful
McDonald's in the area, the locations are 6th Avenue, Industrial Road and on the Kansas
Turnpike. They seem to be close to heavy traffic areas, allowing consumers the opportunity
to take advantage of the convenience of a fast food restaurant. How many times have you
driven by a McDonald's and suddenly decided to stop because you were hungry and it was
convenient. I have done this many times. Their marketing approach is to be close to
business district or close to highways, so that they receive a great number of customers.
The McDonald's on 6th avenue is convenient for people on their lunches and on their way
home from work, or all of those individuals cruising the streets.
The McDonald's on Industrial is located right by the highway, they have a big sign so
people can see the location and it is close to Wal-mart for all the shoppers, and has a
convenient drive from Wal-mart's parking lot to McDonald's parking lot.
The McDonald's on the Turnpike, is set up for those individuals that are traveling and
hungry. This is pretty self-explanatory.
McDonald's is definitely successful due to their closeness to consumers. They provide fast
service for customers of a busy lifestyle.
Brenda Carmichael
http://www.theflightschool.com/facility.htm
This business uses traffiic volume around the site. The business is a
flight school. It uses the airport as a way to increase its visibilty.
People who are around airports are most likely to be the ones who want
to learn to fly. Every day thousands of possible future piolits drive
by the school on the way to the airport. The school is located at the
front entrance to the airport. You can not get in or out without
passing by the school. This helps make the schools location, a prime
spot for potential customers. People who are interested in flying may
also go to the airport to find out about lessons, and then they see the
school for flying lessons. This location is prime for the business of
flying.
Bobby Jones
Wal-Mart
http://www.wal-mart.com
Proximity to Customers
On this webpage, you can select the store locator option. After filling in a couple of
answers on where you want to locate and how many stores you want to locate, the webpage
will tell you where the nearest location is. Wal-Mart is everywhere. Small towns have a
the same Wal-Mart that large cities have. Most people don't have to go far to get to a
Wal-Mart location. The chain has become extremely easy for customers to get to by moving
into smaller locations as well as larger areas. They are not only accessible, but the
stores have everything the customer needs.
Loni Heins
Texaco Gas Stations
www.uk.texaco.com
Proximity to customers I believe is about one of the most important things
to consider when having a gas station such as Texaco. The location is
important because generally the customer is just going to go the location
that is closest to them. The customer may develop some store loyalty but
most likely will just go to the place that is the nearest them. This is why
gas stations are located near highways and also many times have other
services along with gas at one station. It gives customers a onestop
shopping opportunity.
Melissa Koch
Pyramid Pizza (I looked for a home page but didn't find one)
I think that Pyramid Pizza is successful because of its location. Generally
located in a downtown area, they go for business-types looking for a quick
bite to eat. My office eats there every Thursday (The $3 Special: 1 piece
of pizza, a salad, and a soda).
Not only does Pyramid get the daytime crowd but also the late night crowd.
In Emporia, Pyramid is located within 300 feet of three popular bars in the
downtown area. A lot of late-nighters head for Pyramid before heading home.
--Latricia A. Papes
The web site I chose to discuss was Quik Trip, located at http://www.quiktrip.com/
QT is known for being present when other competitor businesses are present
but what people don’t realize is QT’s commitment to serving the customer. Even
if it means putting a QT on every street corner, if financially possible. To prove my
point, I presently live approximately 3 blocks from one QT, 8 blocks from a second, and a
third QT is being built only 4 blocks away. They obviously must have performed a study
determining that the region around where I live was in need for another convenience store
and that there was no danger I cannibalizing one of their other stores. This proves to me
that QT is serious when it comes to meeting the customers needs and demands.
Justin Bovitz
Texaco Gas Stations know the importance of having their gas stations in a
good location. The location of Texaco (or all gas stations) is important because their
customers are looking for the closest gas station so they are able to get back on the
road. It is also important to have your location in an easy access area for your loyal
customers. Most Texaco stations are located right off the highways or exists so they are
easy to locate.
Karen Banks
Dillard's http://www.dillards.com/
The Dillard's store is a clothing store that locates to many types of
people all through the United States. Dillard's definitely uses proximity to customers in
their organization. Dillard's locates in shopping malls and in highly traveled areas. This
allows customers to shop at Dillard's and at several other places at the same time and
location. Location is very important in the retail business. Dillard's and many other
chains have mastered this part of the issues.
Kevin Stultz
Location, Location, Location: W.W. Grainger prides itself on location.
With 350 local branches, 1 National Distribution Center, 2 Regional Distribution Centers,
6 Zone Distribution Centers, the availability of Grainger’s product is unlimited.
Considering itself a "one stop shop" for your industrial needs, Grainger has
installed a satellite network between all of their locations to guarantee product
availability. So, if the closest Grainger location is not in you back yard, they will make
sure you product is to as fast as you need it.
Mindi Wilson
Amazon is a great example of a business that is customer responsive with a
fast delivery of goods to it’s customer. It’s user friendly with products such
as videos, books, magazines, electronics and much more. Sometimes a person may have to
shop more than one store to find a particular book they are looking for, thus you have
invested several hours of your day, just to find what you are looking for. In all of the
shopping that I have done with Amazon, I have yet to NOT find what I am looking for.
It’s convenient, fast, safe, and best of all, it’s at your fingertips.
Anne Boss
Amazon.com - www.amazon.com
Amazon.com is very efficient in it's desire to be close to all of it's
customers. Basically if an individual has internet access then they can
view the extensive inventory of Amazon. This has been a great success
because more and more people are wanting to purchase items from the
comfort of their own home and at different times of the day or night.
Amazon has not only made it easier for people who already read
extensively but opened the doors for those who don't. I applaud Amazon
for this feat.
Haley Ayers
MOTEL 6
www.motel6.com
This issue of facility location is best described by the actions of Motel
6. This company specializes in offering
low cost lodgings conveniently located in or near every major city, airport, highway, etc.
This allows Motel 6 to
accommodate just about any passer by from Mexico to Canada.
Their facility location model to target the most appropriate areas to construct a Motel 6,
is a highly quantitative
process that measures traffic volume for a given city against the property value, and the
future expectations of
potential growth in the area. They also survey the demographics in the area for target
market niches and product
promotions. This information was provided by the Motel 6 home office.
David Beran
Rainforest Cafe
http://www.rainforestcafe.com/main.html
The Rainforest Cafe provides a primal dining adventure. With a jungle
theme that includes fancy aquariums, live parrots, fake monkeys, and synthetic banyan
trees draped with Tarzan-style vines, The Rainforest Cafe creates an upbeat and unusual
setting for a meal. While waiting for your meal, every fifteen minutes a simulated
cloudburst, complete with thunder and lightning, entertains restaurant patrons. Not only
does the restaurant feature an unusual setting, it also boasts an exotic menu. Examples of
menu items are Eyes of the Ocelot (meat loaf with mushrooms), Jungle Chowder (vegetable
soup), and Gorillas in the Mist (banana cheesecake.) The Rainforest Cafe has been so
successful creating a jungle theme that diners often wait as long as two hours for a
table.
Peggy Brecheisen
Proximity to customers- The McDonalds web site has a feature called
"Restaurant Locator" that displays the locations' proximity to
customers. All the customer has to do is click on the Restaurant
Locator and type in his or her street address and a map pops us showing
all the locations in the area. I feel that this feature could be very
useful to people who are traveling to cities they are not familiar
with, especially if they are traveling with children. The customer can
plan their stops ahead of time so that they do not waste time driving
around looking for happy meals.
-Kristen Cataldi (Flores)
UPS - Proximity to Customers
http://www.ups.com/
UPS provides a service through a location that is right in your own town
or city. There are often many drop-off sites in places customers
frequently go to. They are customer-responsive because they ensure
guarantees on all packages that need to be delivered within a certain
amount of time. The customer's needs are focused on by the insurance
policies they offer and the quickness they can deliver.
Michele Schiffelbein
A favorable busienss climate can include the presence of similar-sized businesses, the presence of companies in the same industry, the presence of other foreign companies in the case of international locations. Probusiness government legislation, and local government intervention to facilitate businesses locating in an area via subsidies, tax abatements, and other support are also factors.
Examples:
Apple Bee’s is one my favorite restaurants to eat. Judging by the success they have
had here I not the only person who likes their food. I believe the Business Climate issue
has contributed a lot to there success here. There is some competition by other
restaurants that are about the same size, but that just make for better business for Apple
Bee’s. http://www.applebees.com/
Leon Brigham
LAKEOFTHEOZARKS.COM
This web address is one of my favorite. The web address takes you right to
the resort and lets you decide what accomodations you need. You get to see
the inside of the condo's and the hotel rooms by choosing the room number
you want. This web address also lets you skan over the gold course and the
local chopping attractions. You can make your reservations right over the
www by using your credit card (and get an additonal 25% off!). The site
also allows use to play video games and use their pool!
The site was well designed and planned out. It is one of the most organized
and thought out sites that I visit. As a consumer, it makes me confidient
that I can choose such a resort that I know how it will look what it will
cost me and the diretions on how to get there from my driveway at home.
Anna Catterson
Chili's restaurant is a place you can always count on for good customer
service and great tasting food. But what makes Chili's such a good
dining experience is the climate of each individual restaurant. Each
place keeps an up-beat atmosphere along with the great food. And the
smell of the fajitas makes it even better. By creating this climate for
the customer, Chili's makes the experience there that much better and
makes the customer desire to return.
Michelle Beets
The reason I chosen Holiday Inn as a business that emphasizes on their business climate
is because of the places they are usually located. Holiday Inns are generally located in
an easily accessible place that people will notice while driving. You can see them around
shopping mall, racetracks, casinos, and restaurant areas. They are usually joined by other
competing hotels and motels. Location is one of Holiday Inn's biggest strategies for
gaining customers and continuing to be a successful company.
Amy Thompson
The objective is to select a site with the lowest total cost. This includes regional costs, inbound distribution costs, outbound distribution costs, and regional costs. Land, construction, labor, taxes, and energy costs comprise the regional costs. In addition, there are hidden costs that are difficult to measure. These involve (1) excessive moving of preproduction material between locations before final delivery to the customers and (2) loss of customer responsiveness arising from locating away from the main customer base.
Examples:
Target
http://www.target.com/
While participating in the on-campus interviews, I was able to learn
about Dayton Hudson's Retail Store, Target. Before Dayton Hudson opens
a new Target in a community, detailed research is performed regarding
the economic activity of that area. Dayton Hudson wants to open new
stores in vibrant and growing communities ones that can support the
financial activity the company desires. This demonstrates Total Costs
with issues in facility location.
Heidi Risley
IBP Inc.
http://www.ibpinc.com.index.htm
IBP Incorportated focuses being a low cost leader in its market, but also making wise
business decisions so as to lower
costs. The main way that IBP Inc. does this is by focing on the location of their
suppliers--cows and pigs and the places
they reside. Unlike other plants they locate their manufacuturing plants near large
livestock areas.
In doing this they are able to lower their costs and time in transportation, which is
important to compete in a market that
isn't very differentiated. This also ables them to cut out the middle man which is another
way to lower costs to them-
selves, and their customers.
Jennifer Naylor
Adequate road, rail, air, and sea transportation is vital. Energy and telecommunications requirements must also be met. In addition, the local government's willingness to invest in upgrading infrastructure to the levels required may be an incentive to select a specific location.
Examples:
The educational and skill levels of the labor pool must match the company's needs. Even more important are the willingness and ability to learn.
Examples:
Selma, Alabama advertises on the web the benefits potential businesses would receive by
entering their community. One such benefit is the Wallace Community College located in
Selma, which offers education for a variety of different degrees. By attending Wallace
Community College individuals will become qualified as the "quality labor
force". The site for Selma, Alabama is located at http://www.selmaeda.com/labor.htm where the
following excerpt can be found concerning quality of labor.
Within a 40-mile radius of Selma, is a labor force of more than 90,000 people with various
skills, from manufacturing, utilities, retail, wholesale, communications and other
industries. Selma also has a large pool of workers immediately available in addition to a
sizable number of under-employed whom skills, education and experience exceed the demands
of their current employment (Selma's web-page).
Therefore, Selma meets the requirements of being quality of labor because the educational
and skill levels of the labor pool have the potential to meet the needs of companies that
are considering Alabama as the location of their business.
Steven Good
URL: http://www.applebees.com/index.html
Applebee’s needs to pay good attention to Quality of Labor. If you notice on there
website they
talk about they are looking to hire and don’t care about your talent and who are. The
plays a big
role in the business. You have to care and want the most talented for whatever positions
that are
open, especially management. From what I have seen, they run a very good business and the
labor
quality is good. I’m just stating that for the business they have they need to have
high expectations.
It one of the nicest restaurants around .
Derek Smithhisler
A high-quality and competitive supplier base makes a given location suitable. The proximity of important suppliers' plants also supports lean production methods.
Examples:
The company I choose is Coors http://coorsandco.com/HI_index.html
because water, not just any water but Rocky mountain spring water is the only kind for
this particular beer. Adolph Coors moved across country to pursue his dream of becoming a
brewer. The main ingredient, water, he said was worth more than gold. Coors also only uses
high country barley, which can only be made in the high country. This example shows the
high quality of raw materials that Adolph required for his brewing only to be found in
certain locations and close to suppliers.
William McKernan
The location of other plants or distribution centers of the same company may influence a new facility's location in the network. Issues of product mix and capacity are strongly interconnected to the location decision in this context.
Examples:
Quiznos
http://www.quiznos.com/contentsa.html
I personally know that the Quiznos fast food chain
is very dependent upon its location. My aunt and uncle just recently opened a franchise in
New
Mexico. They were going to open up in Reno, Nevada, but the franchiser (District Manager)
would
not approve any of the locations that they found. The ideal location for a Quiznos is in a
business
district that is developing. They focus their sales strategy on the typical 8-5 white
collar worker who
needs a quick bite to eat. They try to locate in central business districts that are on
the incline and not
on the decline. The bottom line is that Quiznos franchises are very particular in their
locations. They
do have over 400 locations now, but they are in very specifically located spots. It is not
easy to open a franchise just anywhere, and this is good. Quiznos is a rapidly growing
chain and this is due to the fact that they are so particular to their spot locations.
Kenny Finley
A foreign trade zone or a free trade zone is typically a closed facility (under supervision of the customs department) into which foreign goods can be brought without being subject to the necessary customs requirements. There are about 170 such free trade zones in the United State today. Such specialized locations also exist in other countries. Manufacturers in free trade zones can use imported components in the final product and delay payment of customs duties until the product is shipped into host country.
Examples:
The fast-changing geopolitical scenes in numerous nations present exciting, challenging opportunities. But the extended phase of transformation that many countries are undergoing makes the decision to locate in those areas extremely difficult. Political risks in both the country of location and the host country infuence location decisions.
Examples:
Barriers to enter and locate in many countries are being removed today through legislation. Yet many nonlegislative and cultural barriers should be considered in location planning.
Examples:
The world of trading blocs gained a new member with the ramification of the North American Free Trade Agreement (NAFTA). Such agreements influence location decisions, both within and outside trading bloc countries. Firms typically locate, or relocate, within a bloc to take advantage of new market opportunities or lower total costs afforded by the trading agreement. Other companies (those outside the trading bloc countries) decide on locations within the bloc so as not to be disqualified from competing in the new market.
Examples:
The environmental regulations that impact a certain industry in a given location should be included in the location decision. Besides measurable cost implications, this influences the relationship with the local community.
Examples:
Conoco must be very aware of the environmental regulations in all areas
where they conduct business. It is important for them to know all of
the rules, laws, and regulations in their industry inorder to provide
safe service to their customers.
Annette Purdon
The host community's interest in having the plant in its midst is a necessary part of the evaluation process. Local educational facilities and the broader issue of quality of life are important too.
Examples:
http://www.ibpinc.com
The host community is made by the addition of this important company.
IBP is one of the world's largest meat processing plant and it's
location in Emporia is one of the keys to the communities growth. This
is also true about the company, one of the key ingredients to IBP's
success in Emporia is in my opinion the community who supports it.
Emporia has not only good grade schools and high school it also has a
college that is center to so many businesses in Emporia including IBP.
Many students that attend Emporia State University also work at IBP and
so the community supports IBP while IBP supports the community.
Cynthia Stoner
An important decision for multinational companies is the nation in which to locate the home base for each distinct business. Porter [9] suggests that a company can have different home bases for distinct businesses or segments. Competitive advantage is created at a home base where strategy is set, the core product and process technology is created, and a critical mass of production takes place. So a company should move its home base to a country that stimulates innovation and provides the best environment for global competitiveness. [9] This concept can also be applied to domestic companies seeking to gain sustainable competitive advantage. It partly explains the southeastern states' recent emergence as the preferred corporate destination within the United States (i.e., its business climate fosters innovation and low cost production).
Examples:
I chose ibp for this for this assignment because they show that they
have a competitive advantage in their business and because I work there
so I already know a lot of the things that they do. They have their
headquarters and their production facilities located in the U.S. but
they play a large part throughout the world. Ibp has 48 plants in north
america and regional sales office in the U.S. They also have
international sales office in the U.S., England, Mexico, Japan, South
Korea, Taiwan, China, Canada and Russia. They are a huge exporter of
many products to many countries. Ibp definitely has a competitive
advantage because of the position they have placed themselves throughout
the world and they will continue their success because they know exactly
how to do it.
Josh Harris
Microsoft Corporation http//: www.microssoft.com
Microsoft Corporation has a lot of Competitive Advantage, such as NO.1 of
Market Share in commuter's software industry, creative new advance technology, and making
Operation System (Windows 98 or NT, and Office 97).
Bill Gates made first window system in the computer filed. In this category, they is
monopolized this office system program. Nobody did beat this company's operation program.
For instance, IBM used to have good advantage of office program. Bill Gates made most
interesting and creating the idea of program, which is window operation system.
Takaomi Suzuki
The company I work for, Long Realty Company, has an excellent competitive
advantage over other Real Estate Companies. First of all, they are the number one company
in Arizona. They capture over 34% fo the market share. Second of all, we list houses on
the internet and offer to put it in Virtual Realty for the whole world to see. Finally, we
have an in-house Mortgage Lender at every office. Buyers can just go to our office and get
qualified there or over the phone in minutes.
Rico Coppel
Because of the variety of service firms and the relatively low cost of establishing a service facility compared to one for manufacturing, new service facilities are far more common than new factories and warehouses. Indeed, there are few communities in which rapid population growth has not been paralleled by concurrent rapid growth in retail outlets, restaurants, municipal services, and entertainment facilities.
Services typically have multiple sites to maintain close contact with customers. The location decision is closely tied to the market selection decision. If the target market is college-age groups, locations in retirement communities - despite desirability in terms of cost, resource availability, and so forth - are not viable alternatives. Market needs also affect the number of sites to be built, the size, and the characteristics of the sites. Whereas manufacturing location decisions are often made by minimizing costs, many service location decision techniques maximize the profit potential of various sites. [1]
Service-Facility Location Criteria
Service facilities are the terminal points in the system, the points where demand takes place. Either the customer travels to the service facility (as in the case of a hospital), or the service facility travels to the customer (as in the case of a mobile library unit). Since service facilities generally serve a small geographic area, the principal trade-off is between the number of facilities to have and the travel cost between the customers and facilities. Hence, service-facility location problems often involve multiple sites.
For profit-seeking service organizations, perhaps the most important criterion is road access or the availability of public transportation. Other critical factors are:
For emergency services such as fire protection and police, response time and reliability are the principal criteria. [32]
Location in the Service/Retail/Professional Sector - General
While the focus in industrial sector location analysis is on minimizing cost, the focus in the service sector is on maximizing revenue. This is because manufacturing costs tend to vary substantially between locations, but in service firms costs vary little within a market area. Therefore, for the service firm, a specific location influences revenue more than it does cost. This means that the location focus for service firms should be on determining the volume of business and revenue. There are eight major components of volume and revenue for the service firm.
These are:
It is often desirable, for instance, to locate near competition; large department stores, or shopping malls, often attract more shoppers when they are close by. The same applies to shoes stores, fast-food restaurants, and others. [22]
Retail Facility Location - Example - Bank ATMs
The major criterion used in locating a retail facility is the volume of demand. It might be measured by dollar sales revenue for a grocery store or restaurant, or by the number of visitors each year for an amusement park. In any case, estimates of demand must be obtained for potential locations.
Consider the situation of a bank that needs to determine future locations for automatic teller machines (ATMs). The success of an ATM site is measured by the number of transactions that occur there each month, so some way of predicting that volume is required.
The statistical technique of regression analysis can be used by specifying a set of independent variables that are related to the number of transactions. This can be established through meetings with the bank executives and branch managers in charge of existing sites.
The following variables are typical.
With data for census tracts corresponding to existing ATM locations, a regression equation that relates the most important independent variables to the volume of transactions can be developed. The regression model can then be used by bank executives to predict the volume of transactions and thus determine good future locations for automatic tellers.
In locating facilities that are oriented toward sales, the principle factors are market-related and the important data are demographic. Other intangible factors that influence retail location are:
As in industrial location analysis, a scoring model can be used to rank potential sites. [32]
Public-Service-Facility Location
Public-Service facilities include post offices, schools, highways, parks, and so on. A major problem in locating such facilities is the lack of easily quantifiable data. How does one define "social cost" or "social benefit"?
Some of the typical criteria used in the public-service location decisions include the average distance or time traveled by the users of the facilities and the maximum distance or travel time between the facility and its intended population.
Another feature not present in industrial location problems is that public facilities create demand; one would like to locate facilities to serve the largest segment of the population. In this sense, the problem is similar to locating a bank or grocery store, except that profit is not a motivating factor. Cost/benefit analysis is often used to determine public-facility location. [32]
Using several of the Issues in Facility Location factors, and other factors considered, discuss why a particular retail business you go to frequently is so successful, assuming it is.
This should take about two screens of explanation.
Send your comments to the instructor, subject: MG 476 - Assignment 6-1
Reminder: This week, you should also be working on your Electronic Journal Article, if you have not done so already.
Locate a web site which emphasizes the use of one of the Issues in Facility Location factors, name the particular issue (one only, please and thankyou!), provide the URL, and a very brief explanation of how that issue was used by that service business, and your name at the end.
This should take one or two screens of explanation. These responses will be posted.
Send your comments to the
instructor, subject: MG 476 - Assignment 6-2
This will be a mid-course assessment opportunity. Please send me an e-mail with your numbered reply plus a sentence or two of comments on each item. Good feedback from you allows me to make adjustments in the second half of this course and in future offerings.
1. Rate the amount of reading material supplied with this course. (1-7) with
1 = much too little, 4 = about right, 7 = much too much
Comments:
2. Rate the difficulty of reading material supplied with this course. (1-7) with
1 = much too easy, 4 = about right, 7 = much too difficult
Comments:
3. Rate the ease/difficulty you had with understanding the assignments. (1-7) with
1 = very easy to understand, 4 = no problems, 7 = very difficult to understand
Comments:
4. Rate the ease/difficulty of having the course using the Web Page format for study materials. (1-7) with
1 = very easy to work with, 4 = no problems, 7 = very difficult to work with
Comments:
5. How well prepared were you, looking back, to deal with the electronic communications required by this course. (1-7) with
1 = very poorly prepared, 4 = just fine, 7 = very well prepared
Comments:
6. Rate your perception of the ease/difficulty you have had finding good web sites to answer those assignments that called for a new web site. (1-7) with
1 = very easy to find, 4 = just fine, 7 = very difficult to find
Comments:
7. Rate your perception of the variety of assignments you have been asked to do, to-date. (1-7) with
1 = seemed like very little variety, 4 = good mix, 7 = seemed like a great deal of variety
Comments:
8. Rate your perception of the responses you have gotten from the instructor to your questions and to your assignments. (1-7) with
1 = very poor response, 4 = average response, 7 = outstanding response
Comments:
9. Rate your impressions of the use of the weekly Updates, to date, in the course. (1-7) with
1 = total waste of time, 4 = useful, 7 = really a great idea
Comments:
10. How do you like having immediate access to other students' e-mail address through the Student Directory. (1-7) with
1 = of no use at all, 4 = ok, 7 = really like having them
Comments:
11. How do you like having the student web pages available to review. (1-7) with
1 = of no use at all, 4 = ok, 7 = really like having them
Comments:
12. Rate the course overall, at this point in time. (1-7) with
1 = the worst, 4 = ok, 7 = the best
Comments:
Thank you very much. Dr. Smith
Send your comments to the
instructor, subject: MG 476 - Assignment 6-3
William
L. Smith Teacher Home Page Service Management Home Page Emporia State University
If you have comments or suggestions, email me at smithwil@emporia.edu
This page last updated November 1, 1999.