Question

Question 1 With examples and explanations discuss how a raw materials status as pure, weight gaining or weight losing influences a facility’s location decision.
Question 2 What are industry clusters and what are some of their potential advantages.
Question 3 Discuss the impact of multi-country trade agreements on the location of production and distribution facilities.
Question 4 In terms of warehousing design give examples and discuss tradeoffs between involving space, labor and mechanization.
Question 5 Discuss and explain the difference between warehouses, distribution centers and cross docking facilities.
Question 6 How can warehousing productivity be improved without significantly investing in technology and equipment?

Answer 1

A pure raw material neither loses weight nor gains any weight in processing. Hence, manufacturing plant can be either near source of raw material or near the market. e.g. raw cotton, natural gas

Products which are weight-gaining gain weight during processing. Hence, manufactuing plant should be near the market, since transportation cost depends on weight and less weight has to be transported in form of raw material instead of product. e.g. Bottled soft drinks, any assembled product like automobile, cement, brewery

Products which are weight-losing lose weight during processing. Hence, manufacturing plant should be near the raw material source since less weight has to be transported in form of product instead of raw material. e.g. Fruits for Juice making, sugar from sugarcane, salt from sea water, any type of ore, pulp for making paper