What are the factors that influence the number of facilities that a firm chooses to operate? (Why would a firm decide to build or close facilities?)

Answer all questions
1) [10 points] What are the factors that influence the number of facilities that a firm chooses to operate? (Why would a firm decide to build or close facilities?)

2) [10 points] The location decision process has several layers of screening or focus. Explain the location decision process providing examples.

3) [10 points] Cost considerations influence facility location decisions. List and briefly explain key costs that need to be considered in facility location process.

4) [10 points] There are different manufacturing processes: some are weigh-losing, and some are weight-gaining. How does a raw material’s status as pure, weight-losing, or weight-gaining influence the facility location decision?

5) [10 points] Population in a region can be a factor in location decision process. Discuss how population can be viewed as both a market for goods and a source of labor.

6) [10 points] Multi-country trade agreements have influenced the location of production or distribution facilities. Trump administration announced new trade agreement between the US, Canada, and Mexico, named USMCA. Discuss how the previous trade agreement NAFTA and proposed USMCA are different in terms of location decisions.

7) [10 points] How can taxes and incentives impact facility location decisions? Provide few examples where taxes and incentives played a role in facility location decisions.

8) [15 points] Briefly discuss how following factors influence facility location decisions providing examples:

a) Transportation
b) Quality-of-life issues
c) Site specific issues

9) [15 points] Georgia Emergency Management Agency (GEMA) needs to decide the location for its operation coordination facility for hurricane relief/ recovery operations. Following table gives the x-y coordinates of major locations GEMA provides services and number of shipments to each area from the coordination facility each day. Find the location for the operation coordination facility that minimizes total distance travelled. (Use weighed center-of-gravity method).

County
X coordinate
Y coordinate
Number of shipments
Seminole
5
5
6
Decatur
10
5
10
Miller
7
7
6
Early
5
15
5
Baker
15
15
7
Mitchell
20
15
6
Dougherty
20
20
10
Lee
20
25
4
Crisp
25
25
3
Worth
25
20
5
Grady
20
5
7
Terrell
15
25
4