Welcome to the case study assignment. Please read the article below which concerns locating near customers, and also review the Background Readings. Then, in a 4-5 page paper answer the following question.
Do customers really drive location and how does this affect logistical planning? Choose a specific industry (e.g. beer, clothing, automobiles, etc.). Compare the location decision of a Manufacturing company, to a Distributor, to a Retail location. How much influence does the customer of each of these types of businesses have on the location decision? How does this effect the logistics of each?
Crammer, L. J. & Wegfahrt, A. M., (2006). Ranked #9 Proximity to Major Markets. Area Development Site and Facility Planning; Easton, 41(5).
Although a company’s location criteria and business model change over time, it is really the customers who establish broad location strategy. Furthermore, the business model established by most companies will be based on customer preferences – which also change over time. For example, the old-school model used for manufacturing included the need to inventory raw materials and sub-assemblies at the manufacturing site.
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