The Hernandez Company has decided to open a single warehouse to meet the rising

Question

The Hernandez Company has decided to open a single warehouse to meet the rising market demands of its four markets which the company refers to as North, South, East, and West. The locations and demands of these four markets are provided in the table below. Distances are measured using rectilinear distance.

1. If the warehouse must be located at one of the four market locations, which of the four locations is most desirable? Use quantitative analysis to support your recommendation?

2. If the facility were to be located at a point that is central to the four markets as defined by the center of gravity of the four market locations and their corresponding demands, would that be a better location? Explain.

Explanation / Answer

Strengths:

We are able to respond very quickly as we have no red tape, and no need for higher management approval.
We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers.
Our lead consultant has strong reputation in the market.
We can change direction quickly if we find that our marketing is not working.
We have low overheads, so we can offer good value to customers.

Weaknesses:

Our company has little market presence or reputation.
We have a small staff, with a shallow skills base in many areas.
We are vulnerable to vital staff being sick, and leaving.
Our cash flow will be unreliable in the early stages.

Opportunities:

Our business sector is expanding, with many future opportunities for success.
Local government wants to encourage local businesses.
Our competitors may be slow to adopt new technologies.

Threats:

Developments in technology may change this market beyond our ability to adapt.
A small change in the focus of a large competitor might wipe out any market position we achieve.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.