Chapter 9: Facility Location

In: Business and Management

Submitted By wastion
Words 315
Pages 2
Chapter 9: Facility Location

Assignment

Discussion Questions – 3

1. Discuss the advantages and disadvantages of locating manufacturing, assembly, or distribution facilities in countries with relatively low wages.

There are many advantages and disadvantages for locating different types of facilities in countries with low wages. Some disadvantages of this are; the cost and number of supervisory personal willing to relocate to another country, also the Government in that Country may insist on making its own residents be in a supervisory position. Some Countries have sweatshops which are not viewed very well by possible customers and could go against company regulations. Another disadvantage of locating facilities in another country is transportation cost to get the final product back to the initial country where it is needed. This has transportation costs and tariffs and taxes.
Advantages could be a larger available work force, they can get more employees for the same wage as one employee in a different company and therefore get more work done for less. Some countries they could get cheaper labor in close by could be one that they have free trade which means you don’t have to pay boarder tax or tariffs (NAFTA).

2. What are industry clusters, and what are some of their potential advantages?

Industry Clusters are the net advantages which can be gained by a sharing of common locations by various enterprises. They come in a number of different sizes and shapes, and one type of cluster offers organizations proximity to key suppliers. Proximity to key suppliers is a catalyst in the development of supplier parks. Potential advantage in terms of manufactures in a cluster could allow capacity pooling. For example if one manufacturer has to many orders that it can’t full they could in a sense hand of the extra orders to the other manufacturer to finish.…...

Similar Documents

Chapter 9

...9. Compare and contrast circuit-switched services, dedicated-circuit services, and packet-switched services. Both circuit switched and dedicated circuit networks establish a connection between two communicating devices. This circuit provides a guaranteed data transmission capability that is available for use by those two devices only. In contrast, packet switched services enable multiple connections to exist simultaneously between computers over the same physical circuit or even over different physical circuits. Also with packet switching different locations can have different connection speeds into the common carrier cloud. Circuit-switched services typically use a pay-per-use model, while dedicated circuits are billed at a flat fee per month, and the user has unlimited use of the circuit. All three services are leased from a provider and run through the service providers cloud. 19. How does a reliable packet service differ from an unreliable packet service? A reliable packet service, like X.25, guarantees error detection and delivery of the packets because control is done at each node in the network. An unreliable packet service, like ATM, does not perform control, which is left up to the software at the source and destination. 29. Describe five important factors in selecting WAN services. Important factors to consider when selecting WAN services are vendor capabilities, network capacity, cost, reliability and network integration. Reliability refers to the......

Words: 278 - Pages: 2

Chapter 9

...Chapter 6 45 a) How would you determine the scope necessary to complete your audit satisfactory? Typically, the auditor would put in place an audit program that would focus on areas of high risk. The auditor would also want to assess the risk of missing controls. The CPA’s would also want to ass assess the risk of fraud and material misstatement of the financial statements. The CPA would also want to include the controls put in place by Ralph Norris. b) Yes, the CPA could be responsible for fraud. Typically, if there was fraud that was found to exist by the CPA, the CPA would follow up with the client. Lack of follow up on the fraud could lead to liability with the CPA. But, not all types of fraud are easily detectable. The audit would be set up to give reasonable assurance to detect fraud that they are material to the financial statements. If it is immaterial, the CPA would want the client to follow up. 47. a) The auditors can determine whether Precision Industries, Inc has made proper year-end cutoff of sales transactions by knowing that all shipments are FOB shipping point. The client would advise that through a numbered sales order would count and be recorded as sales for the current year. Of course, anything after that number would be for the following year. Investigation in to whether or not the client assigns the serial sales order numbers in a sequential order. b)It could impact A/R, sales, and net income if the sales price is reported incorrectly. ......

Words: 289 - Pages: 2

Chapter 9

...Chapter 9 Case 9.1: The Vision Failed 1. If you were consulting with the HTE board of directors soon after Harold started making changes, what would you advise them regarding Harold’s leadership from a transformational perspective? I would advise the board that Harold is slowly turning into an ineffective president. Yes, changes are being made, but the employees aren’t being treated properly. Also, although the mission statement of the company is posted throughout the building, people are becoming unsure as to where it is going. There aren’t clear expectations and when Harold tries to explain something, the employees aren’t taking it very well. The employees aren’t feeling valued like they should be and something needs to be done. There are ways to change without degrading the employees. 2. Did Harold have a clear vision for HTE? Was he able to implement it? I don’t think Harold had a clear vision. I feel he had an “idea” but was unsure of how to go about accomplishing it. Perhaps he thinks he was able to implement it, but I don’t think he did. It didn’t turn out the way it was supposed to be and it failed in the end. 3. How effective was Harold as a change agent and social architect for HTE? Harold was not effective as a change agent. I see this in the way the employees acted and felt towards him. I feel there were a lot of negative consequences after changed were made, whether intentional or not. 4. What would you advise Harold to do differently if he had the chance...

Words: 2108 - Pages: 9

Chapter 9

...Chapter 9 A part of chapter 9 discusses "Action Research". I do that all the time and probably didn't know the term until now. The example in the book talks about a group of high schools students, who struggle in reading, and how they read to elementary students in their neighborhood. At my school, I call this reading buddies. My fifth graders will pick any K-2 grade class to read to for the week. I allow all my kids to read anything that is on the grade level of the younger students. In the past, I would allow my students to just sit with any younger student. But after reading the chapter, I may start pairing students up in a different way. Our process is the same as the one in book, except my students talk about the book, they look at pictures, predict what will happen. After they read, my students will ask the younger students questions that we as a class have picked out. When we get back to the room, we discuss what happened as we read, do we need a different book next time, did the younger students like the book, what can we work on for next time we read. My students absolutely love to read to the younger students. It is something they look forward to each week. In the future, I would like to become National Board certified. This chapter gave me a little bit more insight into the process. I think it would be a great experience for myself. If anyone has done this or knows someone who has completed the process, I will gladly take your advice. Chapter......

Words: 927 - Pages: 4

Chapter 9

...Chapter 9 New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as...

Words: 9355 - Pages: 38

Chapter 9

...Kelsey Vanwey Jim Tanoos Consumer Behavior Saturday March 7, 2015 Chapter 9 8. Discuss the role of headlines in a print advertisement. What is the difference between a direct headline and an indirect headline and when might each type be used? “A headline has 5-7 seconds to get the attention of a reader. Not only that, but statistics show that only 2 out of 10 readers will read past your headline. That means if you’re going to hook your reader, you need to do it right away” (8 Types of Headlines that Compel Your Readers to Action, 2009). In addition to grabbing the reader’s attention, the headline must offer some type of value to the reader in exchange for them taking the time to read your piece. “Direct headlines are straightforward and informative in terms of the message they are presenting and the target audience they are directed toward. A direct headline may be used when someone or somewhere is offering a specific benefit, making a promise, or announcing a reason the reader should be interested in the product or service” (George E. Belch, 2014). For example, an ad “LandlordMax – 30% off today only” (8 Types of Headlines that Compel Your Readers to Action, 2009). “An indirect headline is not straightforward about identifying the product or service or getting to the point. However, they are often more effective at attracting readers’ attention and interest because they provoke curiosity and lure readers into the body copy to learn an answer or get an......

Words: 368 - Pages: 2

Chapter 9

...Chapter 5 Quiz Review: Probability Distributions & Expectation **Are the following valid probability distributions? (yes or no) If not, state a reason. 1) |X |30 |31 |32 |33 |34 | |P(X) |0.35 |0.21 |0.38 |0.25 |0.11 | Σ X = 0.35 + 0.21 + 0.38 + 0.25 + 0.11 = 1.3 ≠ 1 No, the sum of the probabilities does not equal one. 2) |X |0 |1 |2 |3 | |P(X) |0.2 |0.6 |0.4 |-0.2 | No, -0.2 is not between or equal to 0 and 1. **Construct a probability distribution and graph the results. 3) A box contains three $1 bills, two $5 bills, one $10 bill, and one $20 bill. |X |$1 |$5 |$10 |$20 | |P(X) |3/7 |2/7 |1/7 |1/7 | 3/7 2/7 1/7 $1 $5 $10 $20 4) Find the mean, variance, and standard deviation of the following probability distribution. |# of speeches, X |0 |1 |2 |3 |4 |5 | |P(X) |0...

Words: 426 - Pages: 2

Chapter 9

...In the Thinking section of the chapter, I enjoyed reading the Building Blocks of Thought piece. I thought it provided a good foundation in understanding what activities occur when we are thinking about something. Creating mental images, I think, are a must, especially when it comes to details related to a task which requires making a physical object. I think we need a mental representation of the object so we can picture what we want the result to be. In the Thinking: Problem Solving and Making Decisions section, I was able to relate to the Trial and Error piece of this chapter. In my current job function, I preform User Acceptance testing; this is a form of the Trial and Error strategy. I agree with the chapter in that he Trial and Error strategy can be very time consuming, but is necessary to ensure the desired results are being returned. Also from the chapter, I was also able to acknowledge that myself and some of my work peers experience functional fixedness. We are so use to following a certain process or procedure a certain way, that we block new insight to a more efficient way of doing things. I know being more opened minded can help lower the chances of functional fixedness interfering with finding a more efficient solution. The Language piece of the chapter went over how language has its own syntax, and this I found interesting. The syntax (set of rules for combining words) piece shed some light for me on why people who speak different languages use......

Words: 486 - Pages: 2

Chapter 9

...Chapter 9 Profit Planning Solutions to Questions 9-1 A budget is a detailed quantitative plan for the acquisition and use of financial and other resources over a given time period. Budgetary control involves the use of budgets to control the actual activities of a firm. 9-2 1. Budgets communicate management’s plans throughout the organization. 2. Budgets force managers to think about and plan for the future. 3. The budgeting process provides a means of allocating resources to those parts of the organization where they can be used most effectively. 4. The budgeting process can uncover potential bottlenecks before they occur. 5. Budgets coordinate the activities of the entire organization by integrating the plans of its various parts. Budgeting helps to ensure that everyone in the organization is pulling in the same direction. 6. Budgets define goals and objectives that can serve as benchmarks for evaluating subsequent performance. 9-3 Responsibility accounting is a system in which a manager is held responsible for those items of revenues and costs—and only those items—that the manager can control to a significant extent. Each line item in the budget is made the responsibility of a manager who is then held responsible for differences between budgeted and actual results. 9-4 A master budget represents a summary of all of management’s plans and goals for the future, and outlines the way in which these plans are to be accomplished. The master budget...

Words: 9407 - Pages: 38

Chapter 9

...chapter 9. Evaluating new production and sourcing locations 9.1 Labor costs in manufacturing industries in different countries Norway Belgium Switzerland West. Germany Denmark Finland France Austria Luxemburg Sweden Netherlands Ireland Italy USA Japan UK Spain East Germany Canada Greece Slovenia 43.64 38.59 37.14 36.05 35.08 33.76 33.31 33.20 33.09 32.88 32.75 29.62 27.40 22.95 22.86 22.21 21.87 21.11 21.01 16.44 13.18 South Korea Malta Portugal Czech Rep. Croatia Slovakia Estonia Hungary Poland Lithuania Latvia Turkey Russia Romania Belarus Bulgaria China Ukraine Modavia Georgia Phillippines 11.49 10.27 10.03 8.86 7.89 7.80 7.30 6.94 6.04 5.45 5.25 4.33 3.61 3.39 2.67 2.44 2.25 1.81 1.74 1.65 1.33 Data in EUR per hour, 2009 (adapted from Institut der Deutschen Wirtschaft, 2010) © 2012 R. Grünig/D. Morschett 9. Evaluating new production and sourcing locations 9.2 Total costs of Electrolux for products sourced in different regions Chest-freezers for US market USA China Washing machines for EU market Mexico Production Country = Logistics = Direct labour & overhead Western Europe China Eastern Europe Production Country = Materials & components (Electrolux, 2005) © 2012 R. Grünig/D. Morschett 9. Evaluating new production and sourcing locations 9.3 Components of procurement cost + + + + = Purchasing......

Words: 1598 - Pages: 7

Chapter 9 Starbucks Strategy

...Chapter 9 Assignment: Starbucks vs. McDonald’s Strategies | 1. How does Starbucks enter foreign markets? Do you agree with its rapid growth strategy? (Consider what has happened to the number of stores and locations during the last few years in answering this question). Consider where Starbucks is located, and markets that will be advantageous to Starbucks in the future in answering this question. Discuss how Starbucks entry approach is different/similar from strategies that McDonald’s uses to enter foreign markets. Are both companies currently competing head-to-head in certain markets? Explain. Be specific in your explanation and consider recent press releases and information from annual reports in responding to these questions. (9 points) Starbucks expands into global markets through joint ventures. A joint venture is, “an agreement under which two or more partners own or control a business” (Luthans & Doh, 2012 p. 625). Two businesses partners come together to pursue the same goal and opportunity. Starbucks entered a joint venture with Tata Global Beverages to begin opening and operating Starbucks cafes throughout India. An article titled Strategies for Researching Global Markets says, “In the U.S. close to two-thirds of Starbucks cafes are owned by Starbucks while outside the U.S. about two-thirds of their stores are partnerships” (Virginia’s Community Colleges, p. 1). We agree that Starbucks rapid growth strategy to join international joint ventures......

Words: 5087 - Pages: 21

Chapter 9

...The Islamic University of Gaza Faculty of Commerce Department of Economics and Political Sciences An Introduction to Statistics Course (ECOE 1302) Spring Semester 2011 Chapter 7 - Sampling and Sampling Distributions Practice Exam - Solution Instructors: Dr. Samir Safi Mr. Ibrahim Abed SECTION I: MULTIPLE-CHOICE 1. Sampling distributions describe the distribution of a) parameters. b) statistics. c) both parameters and statistics. d) neither parameters nor statistics. 2. The Central Limit Theorem is important in statistics because a) for a large n, it says the population is approximately normal. b) for any population, it says the sampling distribution of the sample mean is approximately normal, regardless of the sample size. c) for a large n, it says the sampling distribution of the sample mean is approximately normal, regardless of the shape of the population. d) for any sized sample, it says the sampling distribution of the sample mean is approximately normal. 3. Which of the following statements about the sampling distribution of the sample mean is incorrect? a) The sampling distribution of the sample mean is approximately normal whenever the sample size is sufficiently large ( n ≥ 30 ). b) The sampling distribution of the sample mean is generated by repeatedly taking samples of size n and computing the sample means. c) The mean of the sampling distribution of the sample mean is equal to µ . d) The standard deviation of the sampling......

Words: 2499 - Pages: 10

Chapter 9

...Drawing on the specific examples outlined in your text (Chapter 9), discuss the leading indicators for the banking crisis? what are the regulatory mechanisms that have been put in place by leading markets to mitigate this risk? What are the local experiences? A banking crisis is defined as a situation which the value of financial institutions or assets drop rapidly. a financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution. A financial crisis can come as a result of institutions or assets being overvalued, and can be made worse by investment behavior. A rapid string of sell offs can further result in lower asset prices or more savings withdrawals. If left unchecked, the crisis can cause the economy to go down into a recession or depression. There are a number of causes for banking crisis outlined in the text, it is also said that banks are more vulnerable to failures than other companies. This is because they are more fragile than many other firms and more open contagion. There are three reasons to support this view: Low capital to assets ratios (high leverage), which provides little room for losses; Low cash to assets ration, which may require the sale of earning assets to meet deposit obligations; and High demand and short term debt to total debt (deposits) ratios (high......

Words: 1969 - Pages: 8

Chapter 9

...the managers’ participation in these events as well as the participation of other employees in these events. In physically implementing the conceptual model into the database tables, Quandrax wants to combine all employee types into just one table. This means Quandrax would keep the separate employee entities on the E-R diagram, but make just one employee table to represent all of the employee entities, then post keys or make relationship tables as necessary to implement all relationships of employees to the relevant events. All sales are handled via mail or e-mail, as Quandrax does not have any showrooms. Quandrax assigns salespeople to its large corporate customers and the salespeople take sample computers to the customer locations to demonstrate features as part of their sales calls. Only a small percentage of Quandrax’s sales calls result in orders, and sometimes a salesperson might need to make several sales calls to the same customer to obtain one order from that customer. Orders also result from customers surfing the Internet and seeing descriptions of the computers on Quandrax’s website. These customers are not assigned to specific salespeople; Quandrax only tracks the salesperson that actually took the order. Some of Quandrax’s salespeople are hired to handle just such orders and as such are not assigned specifically to any customers. If a customer orders multiple computers on one sale order and some of the computers are immediately available......

Words: 1279 - Pages: 6

Chapter 9

...helped Summit Electric stayed more organize and be able to control how much was needed to be produced and distributed. The system was able to connect over 19 locations. Summit had to advance these processes to satisfy their business requirement. They would had to do updates on a daily bases instead of weekly due to the fact that if they did weekly it would cause delays. The “Batch management” was also a process that became important as well. The process was able to track that how much a supply was being needed as a batch instead of a single product making it easier to know how much was being sold. These processes pretty much modify and made Summit Electric more significant. 2. What problems did Summit have with its old systems? What was the business impact of those problems? There were a few problems that Summit went through with when they still used their old systems. The few problems they with coming across with was the fact that the old system cause them to have delay with their supplies. Also the system was complicated because the system would separate different categories where it made it difficult to combine when needed. The business impact from the problems it had was that the system was not able to keep up with the business. It limited the business where it was only able to handle a few range of numbers and location as well. It caused delays and time consuming task that was not needed to take as much time as it did. 3. How did Summit’s ERP system improve......

Words: 958 - Pages: 4