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Location Analysis in Operations Management

This presentation discusses the significance of location analysis in operations management, highlighting its role in site selection for business success. Key factors include customer proximity, operational costs, labor availability, infrastructure, and government policies, with techniques such as factor rating and GIS mapping for effective analysis. The case study of Zepto illustrates the impact of strategic location choices on reducing costs, improving service, and increasing efficiency.

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75 views7 pages

Location Analysis in Operations Management

This presentation discusses the significance of location analysis in operations management, highlighting its role in site selection for business success. Key factors include customer proximity, operational costs, labor availability, infrastructure, and government policies, with techniques such as factor rating and GIS mapping for effective analysis. The case study of Zepto illustrates the impact of strategic location choices on reducing costs, improving service, and increasing efficiency.

Uploaded by

sylvia.rini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Location Analysis in

Operations Management
This presentation explores key techniques for site selection
in operations management, emphasizing the importance of
location analysis for business success.

BY YASHWANTH
Defining Location Analysis

What is it? Why is it important?

Location analysis is identifying the best site for Location impacts operational costs like
business operations. It evaluates geographical, transportation and labor. It boosts efficiency via
economic, and logistical factors to support long- optimized supply chains and enhances customer
term objectives. reach, increasing market share and profitability.
Key Factors to Consider

1 Customer Proximity 2 Operational Costs 3 Labor Availability

Minimize delivery times Analyze rent, utilities, and Consider the local
and improve customer transportation expenses. workforce and skillset.
satisfaction.

4 Infrastructure 5 Government Policies

Evaluate access to transportation, utilities, Understand tax incentives, regulations, and permits.
and communication.
Location Analysis Techniques
Factor Rating Method

Assign scores to key factors and weigh them based on importance.

Break-Even Analysis

Compare cost structures of different locations to determine profitability.

Center of Gravity Method

Optimize location based on demand and transportation costs.

GIS Mapping

Use digital tools to visualize and analyze potential sites.


Case Study: Zepto

Optimized Warehouses Dark Stores Urban Proximity

Strategically placed warehouses Use dark stores for faster order Focus on high-demand urban areas.
for 10-minute deliveries. fulfillment.
The Impact of Location

1 Reduced Costs

Optimize transportation and logistics expenses.

2 Improved Service

Faster delivery times and enhanced customer


satisfaction.

3 Increased Efficiency

Streamline operations and improve overall productivity


Key Takeaways
Strategic Importance

Location is a critical factor in business success.

Right Technique

Choose the appropriate location analysis


technique for your needs.

Technology's Role

Leverage technology to enhance site selection and decision

Thank you for your time. I am happy to answer any questions you may have.

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