UH SCM 3301 - Chapter 11~ Global Location Decisions (2 pages)

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Chapter 11~ Global Location Decisions



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Chapter 11~ Global Location Decisions

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During this lecture we discussed the contents of chapter 11


Lecture number:
17
Pages:
2
Type:
Lecture Note
School:
University of Houston
Course:
Scm 3301 - Service and Manufacturing Operations
Edition:
1

Unformatted text preview:

SCM 3301 1st Edition Current Lecture Lecture 17 Chapter 11 Global Location Decisions Supply Chain costs and revenues are affected by the location of your facilities Manufacturing service warehousing retail o Transportation Costs o Labor material and energy costs o Service levels o Access to customers o Facility and land costs Acquiring and Maintaining a physical location is a strategic decision Global Location Strategies Offshore Factory o Manufactures products at low cost with minimal technical and managerial resources Source Factory o Manufactures products at low cost but with skilled workers and significant managerial resources Server Factory o Factory set up to take advantage of government incentives reduce taxes tariff barriers to meet regional needs Contributor Factory o Focused on product development and engineering for products that they manufacturer Outpost Factory o Factory set up in an area with an abundance of advance suppliers competitors research facilities etc Lead Factory o Source of product and process innovation and competitive advantage across the entire organization World Class Notes Factories can evolve several of these categories over the decades Global Market and Country Selection Trade Agreements and Policies o World Trade Organization SCM 3301 1st Edition o NAFTA EU Southern Common Market MERCOSUR Nation Competitiveness o Economic Performance Government Efficiency Business Efficiency and Infrastructure Top Three Switzerland United States and Singapore Government Taxes and Incentives o Tariffs federal tax design to protect local businesses Current Stability o Hedge strategies to protect against currency fluctuations Sub Region or State Selection Environmental Issues Access and Proximity to Markets Right to Work Laws Access to Suppliers Community and Site Selection Labor Issues Utility Availability and Cost Quality of Life Issues Land Availability and Cost



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