StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Strategizing optimum location - Essay Example

Cite this document
Summary
Problem context and background: To better illustrate the case, we'll consider a typical food processing industry, e.g. an abattoir that supplies packaged meat directly to Retail stores. The method used in IP is called "Hub location", solved using hub-and-spoke networks, which minimize transport cost across the network…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Strategizing optimum location
Read Text Preview

Extract of sample "Strategizing optimum location"

Problem definition: Strategizing optimum location for Manufacturing 2) Service Problem context and background: To better illustrate the case, we'll consider a typical food processing industry, e.g. an abattoir that supplies packaged meat directly to Retail stores. The method used in IP is called "Hub location", solved using hub-and-spoke networks, which minimize transport cost across the network. Arriving at a precise location requires a combined methodology of "simplistic" transportation techniques (e.g. MODI) to derive least "time" in movement of goods, linear programming network "flow" designs which provide for optimum allocation of resources, and break-even analysis to determine the rate at which disposal services have to be "regulated".

The first two will strategize manufacturing concerns of the abattoir, whereas the last one is a service roadmap.Analysis and theoretical briefing: The standard design of an abattoir goes somewhat like this: a 60 m2 by 30 m2 rectangular Plan consisting mainly of 1)Production module (Pi): P1 slaughter floor, P2 lairage (store area for animals prior to slaughter), P3 chiller, P4 tripe room, P5 meat cutting and processing. 2)Service module (Si): S1 water supply, S2 effluent disposal, S3 solid waste and blood disposal, S4 hide and skin processing, S5 electric light and power.

For our case study, we restrict our discussions on a simplistic level only. Let us examine how standard Operation procedures apply in this case. Using linear programming, we need to mainly determine the quantity and variety (e.g. cattle, pigs, sheep and goat, etc.) of slaughter needed/day based on market demand; in this example the "objective function" is market revenue (Ri) out of beef (x1) and pork (x2), and the constraints are space requirements, and market "demand".

There may also be some extraneous constraints that we may ignore. In notational analysis, we have R1x1 + R2x2 to be maximized, where R1 and R2 denote revenues. We have to optimize bearing the some constraints: e.g. x1 + x2 < A which is 1800 m2 in our case. Once all constraints have been identified, we can have strategically optimized resource allocation, which will ensure better network flow in the longer run.Using MODI method, we can minimize transport cost across both Production and Service outlets.

The design possibility based on variables talked earlier, can be shown as: Since our objective is to minimize "time" factor in transport, we have to design our abattoir facilities in such a manner that it streamlines flow of goods (animals), manpower (butchers), effluents (blood, serum etc.). Before proceeding toward MODI method, we must factor in a streamlined layout encompassing the principle of optimized operations.

The areas as shown for various outlets above have been approximated from considering the "weighted" importance of each location, vis--vis all others. Precise calculations can be arrived at by calculating the weighted "center of gravity" of the entire layout, from which other locations can be pin-pointed. Using MODI method, we can determine optimum location of each transit point (Pi, Si) by repeatedly finding unused routes with the largest negative improvement index each time.

Once the largest index is identified, we need trace only one closed path to achieve optimum symmetrical location. We will now further apply our skills to service area using "break even analysis". The overall objective of the abattoir is to maintain "hygiene" and "quick movement". which it does by defining issues properly, e.g. achieving a certain level of cleanliness always to be maintained. Once that is laid out, we can extend our domain to incorporate discussions on optimum areas for various service outlets, and appropriateness of Si location vis--vis other Si.

It is an easy numerical calculation, and does not require advanced Math. We will, thus have information on a large no. of areas, e.g. "optimum" water supply rate (discharge in m3/ sec), purchase of equipment like incinerators and other disposal units based on "optimum" effluents production, manpower needs, etc. Areas (Y-axis) S5 S1 S2 S4 S3 Preferred Hygiene level B.E. point Disposal rate of effluents (X-axis) Conclusion: Thus, we have seen that a good combined Operations technique can solve the problem in relation to strategically best locations for any industry.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategizing optimum location Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Strategizing optimum location Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1527885-strategizing-optimum-location
(Strategizing Optimum Location Essay Example | Topics and Well Written Essays - 500 Words)
Strategizing Optimum Location Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1527885-strategizing-optimum-location.
“Strategizing Optimum Location Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1527885-strategizing-optimum-location.
  • Cited: 0 times

CHECK THESE SAMPLES OF Strategizing optimum location

Primark: Marketing Strategy, Total Integration

onsideration of effective planning, strategizing and creativity as the key to come out with effective performance.... Total Integrated campaigns involve synchronised working of different departments of the organisation like HR, Marketing, Production, Procurement, Supplies etc.... Such campaigns involve devising strategies in such a manner that all these components complement each other....
11 Pages (2750 words) Essay

Advantages and Disadvantages of Work Flexibility from the Perspective of Employers and Employees

The assignment “Advantages and Disadvantages of Work Flexibility from the Perspective of Employers and Employees” discusses how employers find a balance between the aim to reduce the costs of producing their products while maximizing profits and maintaining employee motivation for productive work....
6 Pages (1500 words) Assignment

Harrignton Collection Case

The clothing company began to look at ways for re-strategizing and boosting its revenues.... The clothing company began to look at ways for re-strategizing and boosting its revenues.... They decided to do this by creating a new clothing line for active wear to follow then current… They proposed to retail their pieces of the active wear line at $100 per hoodie, forty dollars for tee shirts, and eighty dollars for a pair of trousers....
1 Pages (250 words) Essay

Integrated warehouse and transportation management systems

Here, workers get their picks on an electronic mobile device that directs them to the proper location.... hellip; According to the research, it is worth noting that well-designed transport management and warehouse systems help organizations achieve optimum performance and also helps streamline the movement and the storage of goods.... Conclusion While concluding, it is worth noting that well designed transport management and warehouse systems help organizations achieve optimum performance and also helps streamline the movement and the storage of goods....
2 Pages (500 words) Essay

Aggregate planning in manufacturing and aggregate planning in services

anufacturingAggregate planning in the manufacturing processes entails optimum allocation of a companys resources for all manufacturing processes to reduce the time and associated costs during the idle time.... An effective… There are fundamental differences between aggregate planning in service provision and manufacturing. Aggregate planning in the manufacturing processes Aggregate Planning YourFirst YourLast Major differences between aggregate planning in manufacturing and aggregate planning in servicesIntroductionAggregate planning is the process of strategizing, analyzing and sustaining the operational program of a business company....
1 Pages (250 words) Assignment

Banner Health Network Growth Strategy

The organization provides medical care to citizens in seven states.... The organization was formed from a merger of two health care organizations; Samaritan HealthCare from Phoenix and Lutheran Health… The organization currently employs more than 35000 workers.... The number of workers is likely to increase due to the growth strategies proposed by the organization. As noted, the company has operations in 7 states namely Arizona, The organization has expansive plans to increase the state coverage as well as the concentration of its services in the seven states....
4 Pages (1000 words) Essay

International Supply Chain Management in Canada

 … International logistics and supply chain management in general terms can be described as the process of effectively strategizing and managing multiple activities all aimed towards carrying outsourcing and efficient transportation of goods from one location to another.... Details will be also mentioned regarding the strengths and weaknesses of this organization along with formulation of effective supply chain and transportation plan for setting up within this new proposed location....
8 Pages (2000 words) Term Paper

Endangered Species Recovery Plans

This paper “Endangered Species Recovery Plans” seeks to analyze the Karner blue butterfly to show the different plans for its recovery: when such steps as the recovery of the canopy and inclusion of state regulations are keenly observed and followed, optimal results will be achieved.... hellip; The author states that there is an eminent desire for states to incorporate independent scientific instruction into conservation legislation to boost their effectiveness....
6 Pages (1500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us