What Kinds of Location Decisions Are Appropriate for the Use

question 106

Essay

What kinds of location decisions are appropriate for the use of locational cost-volume analysis? Write a brief paragraph explaining how the method can assist an operations manager in choosing among alternative sites in making a location decision.

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Definitions:

Labor-saving Devices

Tools, machines, or systems that reduce the amount of labor needed to perform a task or produce a good.

Proprietor's Income

The income earned by the owners of unincorporated businesses for their labor and capital investment.

Salary

A fixed regular payment, usually expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Economic Forecasts

Predictions about future economic activity, including growth rates, inflation, and labor market conditions, based on current and historical data.