Operational Management

Itumeleng Ramphisa g10r0793 Tutor : Kira Wiles Tutorial 3 1. Location of accomplishments will see on the type(s) of the stock and the aim of the post decision, according to (Pycraft, Singh, Phihlela, Slack, house and Johnston, 2007:146) to achieve an assume balance between three colligate objectives: the partial vari subject costs of the accomplishment, the service the operation is able to provide to nodes and the revenue potential of the operation. The essence of making an appropriate decision on location is to help the business smirch costs so as to provide better customer service which will in turn attract customers, and maximise revenue. If the companys main business activity is the show goods to other businesses and not necessarily to end-users, the location is unimportant to its clientele, therefore, the operation need not to have attractive buildings or/be convenient to its customers. Moreover, the location is unlikely to affect the companys earnings significantly; however, transport costs may be higher depending on how far apart the operation and its customers ar.

Since almost businesses in the service industry involve direct suffer with customers factors such as operational costs and income are alter by location, therefore customer convenience and image are inherently important in influencing customers perception and building business reputation, which will in turn help attract more than customers and increase revenue. Pycraft et al (2007: 146). Whether accessibility is an important factor or not in choosing an appropriate location depends on whether the operation transport goods to customers or customers come to them. If customers have to come to them, visibility is a key factor in its operation, choosing an urban commercial-grade or residential area would enable the operation to in effect carry out its business activities, however, the cost of this such location is usually truly high and there is usually very little or no space to... If you want to take in a full essay, order it on our website: Orderessay

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