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Logisitics/Supply Chain Mgmt. – Criteria to consider

Deliverable length: 500–600 words + references (minimum 2)

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.

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In one of your initial meetings with the chief executive officer (CEO), she asked you to identify a number of the typical criteria used when making new location decisions. Complete the following:

  1. Describe and list at least 8 specific criteria to use.
  2. Explain the logic of why each criterion should be important.
  3. On a relative scale of importance, assign a high, medium, or low weight to each of the 8 criteria.

Do not put all of this information into 1 paragraph; instead use 8 paragraphs, answering all 3 questions for each of the 8 criteria in a separate paragraph. A chart would also be acceptable.

Instructor Notes and guidelines: (Please read it)

Please note when doing this assignment that you respond to all three task list questions for EACH of the 8 criteria you are listing and discussing here.

For example,

Criteria # 1 = xxxxxxx

Logic for selection = xxxxxxx

Level of Importance = high, medium or low and why

Then move on to Criteria #2 and do the same as illustrated above.

Here are a few examples of criteria that should be considered with location decisions:

  1. How many distribution centers should the firm use and where should they be located?

For example, is your firm local, national or international? ; Generally speaking you always want to locate your distribution centers “near” your customer base.

Why is this important?

  1. What customers or market areas should be serviced from each distribution center?

For example, IF you have several distribution centers across the USA, which center serves which customers?

Would you allow any center to serve any customer or divide the centers geographically?

  1. Which product lines should be produced or shipped at each plant or distribution center?

In other words, should each distribution center carry only a few of our company’s products and other centers carry the rest?


Should each distribution center carry the entire inventory of the company’s product lines?

  1. What logistics channels should be used to source material and serve international markets?

This refers to selling your products overseas. ; Would you have a dedicated center that deals specifically with overseas markets? ;

Do you have your product made overseas, shipped to your distribution center in the USA, and then ship it back out to overseas customers or does your overseas mfr. do it for you?

  1. What combination of public and private distribution facilities should be used?

In other words, do you own your distribution centers OR outsource your center to others whom you pay to lease their facilities? ;

While it might seem odd to outsource your distribution centers to others, you as a company would save the costs of having your own employees, paying benefits, etc.

  1. Proximity to your suppliers and customers

How close is your proposed facility to the suppliers that you rely upon?


How close is your facility to your customers?

  1. Access to Infrastructure

Is the site of your proposed location near highways, waterways, airports, etc.?

Are the roads leading to and from your facility in good shape?

Clearly these are just a few of the many criteria that needs to be considered when discussing location decisions. ;

Many more are available to you via Internet searches.

For each, be sure to list

  1. The criteria

The logic of its importance
Its’ relative importance (high, medium, low) and WHY

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