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Logistics Planning Case Essay Example

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Logistics Planning Case

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Logistics Planning Case. There is also one non-alcoholic drink commonly known as ZERO. Research indicates that business location is very vital, however, the location of the enterprise may not mean a lot if the product mean a lot to customers (Crammer, & Wegfahrt, 2006).The location decision of manufacturing company to distributors and retailers tend to be affected by some factors. Some of the factors that need to be taken into account by the manufacturer when deciding about their business location have been put forth. Firstly, the manufacturing company must consider the availability of raw materials and labor. A manufacturing company should also ensure that the location where the production will take place has all the necessary raw materials that will facilitate production and eliminate production cost attributed to transpiration of goods to the customer’s premises.

For example, a Bear manufacturing company such as Empresas Polar should consider locating its production facility adjacent to Barley firm so that processing activities can be immediate. Besides, the location of a manufacturing company should be evaluated to ensure that the area where the business is being located there is the availability of labor force both skilled and unskilled labor (Crammer, & Wegfahrt, 2006).The labor force may help the company to execute successfully its production activities at an affordable price and ensure that goods produce meet and exceed the needs and anticipations of the customers. For example, Empress Polar manufacturing may eliminate the cost involved in outsourcing workers from other regions and ensure that production has been carried out on time to eliminate delays. Some product may be rare to find and may only be found in specific locations, in such a case customers may be willing to travel a long distance to look for such products. However, a business that deals with manufacturing and distribution of bears should carefully consider its location decisions (Crammer, & Wegfahrt, 2006).Most customers tend to prefer companies that are strategically located, where the logistic systems are efficient. The study shows that customers tend to be ready to pay a higher price if the business is in a convenient location where road and communication infrastructure is efficient. The company should also consider the community around so that the manufacturing company can evaluate whether its location will create a long-term business. Logistics Planning Case.

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