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Chapter 8
Service Facility Location
Chapter 8
Service Facility Location
PAGE 142
PAGE 125
124
CHAPTER 8
SERVICE FACILITY LOCATION
TEACHING NOTE
This chapter begins by using La Quinta Motor Inns to illustrate the strategic considerations in the facility location decision. Several strategies are explored including the impact of the Internet on service location. A discussion of geographical information systems follows. Because techniques for facility location analysis tend to be very complex, only a few simple approaches are discussed in length. The cross median approach to the location of a single facility using a metropolitan travel metric is pleasing intuitively because it is based on the statistical property of the median. This approach is easily implemented graphically and often produces counterintuitive results. The Huff retail-location model has been used extensively for locating shopping centers, retail banks, convenience stores, and other profit-making endeavors. The location set covering model is a popular approach to the public sector multiple facility location problem. Returning to La Quinta we consider an application of regression analysis for motel site selection.
SUPPLEMENTARY MATERIALS
Case: Yum! Brands, Inc: A Corporate Do-Over (HBS: 606041-PDF-ENG)
Describes the successful turnaround of the restaurant company Yum! Brands after its spin off from PepsiCo and covers how the companys leadership planned and executed on virtually every dimension of the employee experience. The main dilemma centers on what the company should do in terms of multibranding--housing two brands in one physical location. (brand management, international business)
Case: Southwest Airlines-1993 (A) (HBS case 9-694-023)
Southwest Airlines, the only major U.S. airline to be profitable in 1992, makes a decision as to which of two new cities to open, or to add a new long-haul route. This case provides a window into Southwest’s strategy, operations, marketing, and culture
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