MGT608 American International WK4 Global Location Decision Model Paper

First, let’s talk Transportation on the strategic scale. Deciding on a facility location (like a Distribution center or a Manufacturing plant) is a very important decision. What’s impacted? 1) Your cost to ship in-bound products from suppliers and your cost to ship outbound products to customers, and 2) your customer service to the production line or customers. And the fixed costs are VERY high and therefore the cost to change a bad decision are very high! First, let’s compute a qualitative decision for a global location:

 

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