Convenience

Facilities Decisions
Facilities
are the physical locations where products or services are created, stored, and
distributed. Major decisions pertain to facilities location and facilities layout.
Location
Location
is the physical positioning or geographic site of facilities and must
be determined by the needs and requirements of the organization. A company that relies
heavily on railroads for transportation needs to be located close to rail facilities. GE
decided that it did not need six plants to make circuit breakers, so it invested heavily in
automating one plant and closed the other five. Different organizations in the same
industry may have different facilities requirements. Benetton uses only one distribution
center for the entire world, whereas Amazon has several distribution centers in
the United States alone. A retail business must choose its location very carefully to be
convenient for consumers.
product–service mix
How many and what
kinds of products or
services (or both) to
offer
capacity
The amount of
products, services, or
both that can be
produced by an
organization
facilities
The physical
locations where
products or services
are created, stored,
and distributed
location
The physical
positioning or
geographic site of
facilities
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Part 5:
Controlling
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