The Sage Course Companion on Operations Management is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like an operations manager but also to think about the subject critically.
The first reason is that a new business has been created and requires facilities in order to manufacture its product or service its customers. The second reason is that there is a decision to relocate an existing business due to factors such as the need for larger premises or to be nearer a customer base. The third reason is to expand into new premises as part of a growth strategy.
The location decision can be considered in terms of factors that vary in such a way as to influence cost as location varies (supply-side factors) and factors that vary in such a way as to influence customer service as location varies (demand-side factors). The location decision can be seen as a trade-off between these ...