p roduction a nd o perations m anagement. l ocation s trategy
TRANSCRIPT
CASE PROBLEM
1. Increase in labor costs
2. Utility cost increased
SO, COMMITTEE SUGGESTED TWO NEW LOCATIONS
MALAYSIA
1. Give access to Natural Resources 2. Transportation Infrastructure is good 3. Deep sea port
SINGAPORE
Advantages• Labor relatively cheap,• Good transport infrastructure ◦ Incentives offered to stay.
Disadvantages: Increasing labor costs Increasing utility costs.
MALAYSIA
Advantages: 1. Access to raw materials and natural
resources 2. Inexpensive labor Disadvantages: 1. Concern with frequency of ship visits. 2. Transportation cost increased.
What other relevant factors that are not mentioned in the case study might play a role in this decision?
QUESTION N0. 2
1. The education of the workforce 2. Political stability will impact the decision.
Why is transportation infrastructure so important in this decision?
QUESTION N0. 3
Transportation costs will doubtlessly have a large impact on the decision.
This is a long-term strategic decision; what factors might change in the next ten to twenty years? How will this influence the decision?
QUESTION N0. 4
Examples of costs which are likely to change and whose change would make or break the decision