Online Beer Game Please: • bring your own notebook • use IE explorer • have wifi access right in MBA center • know how to clear your browser’s cache B4 you come • be punctual (will start the game on time 6:45 pm) • 2 persons each group (desirably), please get a partner • install the beer game (come together with the textbook)
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Logistics Network
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Issues in Facility Location
• • • • Proximity to customers Business climate Total costs Infrastructure
Issues in Facility Location Continued
• Quality of labor: educational and skill levels must match needs • Suppliers: proximity of important suppliers supports lean production • Other facilities: location of other facilities can influence a location decision • Free trade zones: a closed facility into which foreign goods can be brought without being subject to the normal customers requirements
Issues in Facility Location Continued
• Political risk: risks in both the country of location and the host country influence the decision • Government barriers: barriers in many countries are being removed • Trading blocs: firms locate within a block to take advantage of new markets or lower total cost
Issues in Facility Location Continued
• Environmental regulation: these impact a certain industry in a given location and must be included in the decision • Host community: host community’s interest is part of the evaluation process • Competitive advantage: the location should provide the company with a competitive advantage
Which brand? How much?
http://en.wikipedia.org/wiki/Singur_Tata_Nano_controversy
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AIR
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Reach 50% of the World’s Population within 5 hours
http://www.threerunwaysystem.com/en/Growth/Economic_contribution.aspx
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Major Airports within PRD
廣州
珠江三角洲地區
珠海
深圳 澳門
香港
Q
• If you have a second chance to locate the new Hong Kong International airport, where should our new airport be located?