Review and Discussion Questions
I. List some practical limits to economies of scale; that is when should a plant stop growing in size?
2. What are some capacity balance problems faced by the following organizations or facilities?
a. An airline terminal.
b. A university computing center.
c. A clothing manufacturer.
3. What are the primary capacity planning considerations for foreign companies locating their facilities in the United States?
4. What are some major capacity considerations in a hospital? How do they differ from those of a factory?
5. What are some of the location factors that a manufacturer needs to take into consideration in locating a factory in a foreign country?
6. In what respects is facility layout a marketing problem in services? Give an example of a service system layout designed to maximize the amount of time the customer is in the system?
7. Identify some of the site selection criteria that should be considered by a high-end, full service hotel chain such as the Hilton, Hyatt, or Marriott. (By full-service we mean that the hotel has a restaurant. cocktail lounge. meeting rooms. and catering facilities to accommodate large functions such as conferences and weddings.)
8. Identify some of the site selection factors that should be considered for a budget motel that primarily provides only rooms, such as Motel 6. Days Inn, and Econo Lodge.
9. What are some of the factors that should be taken into consideration when evaluating potential sites for a distribution center of quasi-manufacturing operation that directly supports retail operations?