Location Planning at A.B. Corp.
In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B12D008-E
Format: PDF
Number of pages: 3
Publication Date: Apr 30, 2012
Language: English
Review date: Apr 12, 2012
What material is included in this case:
Description
In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.
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Year: 2010
Geographic Setting: India
Learning Objective
The case objective is to understand the interrelationship between quantitative and qualitative factors in decision making. The case provides a good illustration of how a small/medium-sized organization, even with resource constraints, can utilize technological and economic analysis in various plant activities. The case also highlights problems that occur in assessing the trade-offs between various qualitative and quantitative factors. It provides a good foundation for quantitative decision making and teaches students to take a holistic view of factors such as centre of gravity and load-distance for deciding on a suitable location.
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