Facility Location and Layout Design

Facility Location and Layout Design
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Facility Location and Layout Design
Question 1
Multiple Criteria Involved in Location Making Process
Many factors go into a company’s decision to locate a new facility. Some of the most important criteria include the availability of land and buildings, the cost of doing business, the availability of labor, the quality of the workforce, and the quality of the infrastructure (Ozdemir & Sahin, 2018). Other factors that may be important include the tax environment, the cost of goods and services, the climate, and the proximity to other businesses.
Qualitative Analysis of the Challenges Involved
Two issues are linked with Joseph in the case study. The first issue relates to the facility relocation, and the second issue is connected with the layout planning.
Challenge 1: Facility Relocation
Facility relocation is the biggest issue because of growing business and product demands, increased rents, and the quality time needed to manage travel and traffic. That is why the ideal recommended location for Joseph is near National Highway (NH66), which is large enough to meet the company’s demands. In addition, it is a commercially viable option that is flexible to meet future requirements (IVEY, 2022). However, before final decision making, there is a need to scrutinize different options and evaluate them against the criteria set. These decisions will significantly impact the operational logistics business efficiencies (Ozdemir & Sahin, 2018). Therefore, he needs to compare five locations depending on their benefits and select the most suitable location, which is better in terms of cost-efficient and functional method.
Challenge 2: Layout Planning
The new facility creates a challenge for the production of boats and plans for display, leading to a service factory. Joseph needs to rely on the manufacturing layout with the ambiance (IVEY, 2022). The tasks required require skill sets, training, and mindset leading to a layout design. In addition, Joseph needs to fulfill functional requirements for designing the service factor within such constraints.
Question 2
Service Factory
The service factory is responsible for creating new services. It is a factory because it produces services, and it is a service factory because it can do any service efficiently. It describes that a factory is a customer service source where services or products are manufactured.
Features in Mind of Joseph
Joseph believes in operating the business through the service industry and offering customized luxury boats to meet the niche market demands. The strength ...