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Locating Facilities: Factors

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Bit Technology Inc. is a new firm and they are deciding where to locate its facilities. As a high-tech manufacturing firm:
1. What factors should be taken into consideration in making this decision?
2. Does the fact that it is international corporation affect the types of factors one should consider?
3. Which location would you choose if you were in charge of determining a location for a new high tech manufacturing facility? This location can be local, national or international. Please provide reasoning behind your decision.

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I think that one very important factor that should be considered in the decision on where to locate its facilities, is the distance that the facilities are from the raw materials that are needed for these facilities to operate in respect to high-tech manufacturing. This is due to the fact that if these facilities are located extremely far from the sources of raw materials that are needed for this manufacturing to take place, then it will be highly expensive to transport these raw materials to these manufacturing facilities, and thereby increase the organization's operational overhead costs. Another factor that should be considered in this decision are the number of qualified individuals within the area that can be trained as staff members within these facilities. This is due to the fact that that the organization must transport a great deal ...

Solution Summary

The solution discusses the different factors in locating facilities.

See Also This Related BrainMass Solution

Managing the Supply Chain (c)

Read the following three articles. The first article features Gulfstream, a General Dynamics company, showing you how they use location to support their domestic and international supply chain links. The second article, provides a good overview of key location factors that need to be considered in defining an optimal spatial supply chain configuration. The third article is focused on the importance of a network based approach to optimizing location:

Thuermer, K. E. (2004). Gulfstream relies on international supply chains to deliver world class aircraft. World Trade, 17(11), 46-49.

Mentzer, John T. (2008 May) 7 Keys to Facility Location, Supply Chain Management Review, New York: Vol 12, Iss. 5 pg. 25, 1 pgs.
While the following article is focused primarily on distribution networks, it also has relevancy to inbound supply networks:

Geary, Steve (2009 Feb/Mar) It's the Network, Not the Node, Area Development Site and Facility Planning, Easton: Vol. 44, Iss. 1, pg. L4

Answer the following questions:

Q1) Does Gulfstream's headquarters and major assembly facilities in Savannah effectively use the locationâ??s site and situation attributes to achieve supply chain efficiency? (Explain)

Q2. How would you describe the relationship between Gulfstream's "just in time" manufacturing and its strategic decision to locate its major facilities in Savannah?

Q3. Does Gulfstream's manufacturing headquarters in Savannah optimize the "7 Keys to Facility Location" defined in the Mentzer article? (Be sure to discuss which of the 7 Keys are most relevant to the Savannah location).

response is 640 words plus references

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