By Ram Naresh Roy
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5. Retail layout: allocates shelf space and responds to customer behavior. 6. Warehouse layout: addresses trade-offs between space and material handling. The first three are called the basic layouts. They are differentiated by the types of work flows they entail; the work flow, in turn, is dictated by the nature of the product. Services have work flows, just as manufacturing do. Often the work flow is paper, information, or even the customers. The right layout for an organization will improve productivity, the quality of the product or service, and delivery rates.
In the next section, we briefly introduce three types of models that have been applied to the location problem. They are (a) simple median model, (b) center of gravity model, (c) linear programming, and (d) simulation. All these models focus on transportation costs, although each considers a different version of the basic problem. 1 SIMPLE MEDIAN MODEL Suppose we want to locate a new plant that will annually receive shipments of raw materials from two sources: F1 and F2. The plant will create finished goods that must be shipped to two distribution 24 A Modern Approach to Operations Management warehouses, F3 and F4.
Excellent schools, parks, hospitals, residential areas, etc. should be desirable. Space for Future Expansions Demand of products is dynamic in nature. It may be required to increase the production capacity of the plant in future if the demand increases or change the product altogether if the demand is very low. Thus, there should be an adequate space for future expansion or diversification of the plant. 1 RURAL AND URBAN SITES COMPARED It has been seen above that some points are favorable in rural site, and some are good in an urban site.
A Modern Approach to Operations Management by Ram Naresh Roy