Facility Location and the Theory of Production


Book Description

The design and location of production facilities are important aspects of corporate strategy which can have a significant impact on the socio economy of nations and regions. Here, these decisions are recognized as being interrelated; that is, the optimal plant design (input mix and output level) depends on the location of the plant, and the optimal location of the plant depends on the design of the plant. Until the late 1950s, however, the questions of where a firm should locate its plant and what should be its planned input mix and output level were treated, for the most part, as separate questions, and were investigated by different groups of research ers. Although there was some recognition that these questions are inter I 1928; Hoover 1948; Isard 1956], no detailed analysis related [e. g. , Pre doh or formal structure was developed combining these two problems until the work of Moses [1958]. In recent years scholarly interest in the integrated production/locaton decision has been increasing rapidly. At the same time that research on the integrated production/location problem was expanding, significant related work was occurring in the fields of operations research, transportation science, industrial engineering, eco nomics, and geography. Unfortunately, the regional scientists working on the production/location problem had little contact with researchers in other fields. They generally publish in different journals and attend dif ferent professional meetings. Consequently, little of the recent work in these fields has made its way into the production/location research and vice versa.




Location of Production


Book Description

Where economic activity will locate in the future is one of the most important questions in economics. Even though advances in technology have reduced the cost of transport, communication and information gathering and processing, hence curtailing the 'distance penalty', local proximity (clusters) of firms that produce similar, competing and/or related products together with supporting institutions still matter. Economies of scale, activity-specific backward and forward linkages (indivisible production), accumulated knowledge and skills, innovation, existence of sophisticated customers and a fall in transportation costs play relevant roles in the 'protection' of clusters and absolute locational advantages of certain locations. 'Global' competitiveness often depends on highly concentrated 'local' knowledge, capabilities and common tacit codes of behaviour, which can be found in a geographical concentration (cluster) of firms.




Plant Location Selection Techniques


Book Description

This book ties together history, legislation and economics to create an awareness of what chances an individual will have when he selects a location for a plant. Key costs are discussed including those mandated by the environment and by legislation. The impact of cultures, both past and present, upon the opportunity for economic success are reviewed. It is a ""How To"" and a ""Beware"" presentation of plant location, both domestic and international. The book is designed to provide chief executive officers, manufacturing vice presidents, chief engineers and engineers a checklist of things to do in analyzing a potential plant site. It is also designed to provide state and local industrial development staffs' guidance in their efforts to obtain industry. New entrepreneurs will find this book to be useful in making presentations to financial agencies. The do's and don'ts of plant location are dealt with from both the current and historical prospective. The impact of legislation upon manufacturing costs and thereby industry location is covered by both current and past examples. Examples of failed locations from both industry and site planners perspectives are provided. The book shows how to choose the best location in a country through arraying the basic economic and social facts in an orderly manner. Both tangible and intangible cost analysis and factor weighting are covered. Included are the impact of customs, legal systems, ways of doing business upon costs, management style and plant efficiency. Current legislation's potential impact upon plant location is evaluated. This review includes GATT, NAFT A, CBI and other international direct and indirect influences on markets and costs. Also the present and potential impact of OSHA, ADA, EPA and other national mandates is covered.




Alfred Weber's Theory of the Location of Industries


Book Description

Weber’s theory, called the location triangle, sought the optimum location for the production of a good based on the fixed locations of the market and two raw material sources, which geographically form a triangle. He sought to determine the least-cost production location within the triangle by figuring the total costs of transporting raw material from both sites to the production site and product from the production site to the market.







The Location of Domestic and Foreign Production Affiliates by French Multinational Firms


Book Description

Economists interested in location choices usually focus their attention on investments abroad. This neglects the fact that multinational enterprises continue to invest domestically while undertaking foreign expansion. This paper compares investments at home and abroad. Our firm-level dataset shows an important home bias in productive investments. Part of this "excessive" domestic investment is explained by standard determinants of location choices. The interdependence between affiliates of the same industrial group however accounts for the lion's share of the home bias. Moreover, French firms' propensity to invest abroad is positively related to their productivity and the size of their intangible assets.




Industrial Location


Book Description

Location is vital to the efficiency and profitability of industrial activity. Industrial Location presents a comprehensive introduction to and critical review of this field of growing academic and business interest. In business, the right choices have to be made to produce profit. Industrial location is a fixed investment, crucial to the strategy and capital investment of any organization. Location also impacts upon non-investors, directly affecting employment, the environment, and economic activity in the locale. Focusing chiefly on the United States, but drawing on an international range of cases, the authors explain the economic, social and political forces which have shaped comtemporary patterns of industrialization and examines the changing nature of production and systems.










Runaway Hollywood


Book Description

After World War II, as cultural and industry changes were reshaping Hollywood, movie studios shifted some production activities overseas, capitalizing on frozen foreign earnings, cheap labor, and appealing locations. Hollywood unions called the phenomenon “runaway” production to underscore the outsourcing of employment opportunities. Examining this period of transition from the late 1940s to the early 1960s, Runaway Hollywood shows how film companies exported production around the world and the effect this conversion had on industry practices and visual style. In this fascinating account, Daniel Steinhart uses an array of historical materials to trace the industry’s creation of a more international production operation that merged filmmaking practices from Hollywood and abroad to produce movies with a greater global scope.