Operations Management Case Study

Location of a Production Facility

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Abstract:
Platex Limited (Platex), which emerged as one of the foremost manufacturers of textile handicrafts in North India, realised the increasing demand for its products in South India. It planned to set up a new production facility at a suitable location and zeroed in on few locations for consideration. The management collected relevant data about the states and major cities, which list out the benefits of the location and other factors like cost, potential, etc. Ultimately, Factor rating method was used to identify a suitable state and Center of gravity method was used to identify a suitable location for their proposed business operations. Based on information and experience in the field, a wide variety of factors are identified and included in the analysis. Appropriate weightage was given for each factor in the analysis. After interpretation of the score of critical factors, ‘Ernakulam’ in Kerala was selected for their business operation in South India.

Pedagogical Objectives:

The case study may be used for understand:
• Factor Ratings Method
• Center of Gravity Method
• Identifying and giving weightage for critical factors.

Keywords : Operations Management, Production facility Location, Factors Rating Methods, Centre of Growth Method, Critical factors, Factors Score, Rating Scale Course Case Mapping

Contents:

• Introduction
• Suggested Questions for Discussion