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Subject
Business
School
California state university san bernardino
Type
Homework
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Running Head: STRATEGIC IMPORTANCE OF A FACILITY LOCATION 1
Strategic Importance of a Facility Location
Students Name
Institutional Affiliation
Course/ Number
Faculty name
Due date

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STRATEGIC IMPORTANCE OF A FACILITY LOCATION 2
Question 1
Natural resources/ raw materials are a factor in production, which makes them very
important in manufacturing. According to the case study, neither of the two metropolitan
areas, Patna or Lucknow, has an advantage over the other concerning the natural resources
used to make wickable shirts. The primary resources used to make wickable shirts are
cotton and polyester. None of these resources is found in Buhar province, which hosts the
district of Panama, or Utlar Pradesh province, which hosts Lucknow district. If any of the
regions had the ingredients readily available, then it would have an advantage.
Question 2
Lucknow is the best location for AAA to locate its wickable shirt manufacturing
plant. For a manufacturing company dealing in bulky raw materials and finishing goods,
management of transportation costs is essential as their values can tear into a company's
profits unless they are well managed. Bearing in mind that the shirts will need to be
delivered to Mumbai Port for the final shipping to Europe and the USA, the company
should consider transportation costs between the two districts and Mumbai. As of late
2013, a highway trip between Lucknow and Mumbai is estimated to take 22 hours, while a
highway trip between Patna and Mumbai is expected to take 28 hours. Also, Lucknow
appears to offer superior rail service to Mumbai in comparison to Patna. Although both
cities provide air service to Mumbai, Lucknow provides non-stop air service to Mumbai,
while Patna's service to Mumbai is via connecting flights, generally through New Delhi.
These data suggest that Lucknow would be the preferred location.

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Running Head: STRATEGIC IMPORTANCE OF A FACILITY LOCATION Strategic Importance of a Facility Location Students Name Institutional Affiliation Course/ Number Faculty name Due date 1 STRATEGIC IMPORTANCE OF A FACILITY LOCATION 2 Question 1 Natural resources/ raw materials are a factor in production, which makes them very important in manufacturing. According to the case study, neither of the two metropolitan areas, Patna or Lucknow, has an advantage over the other concerning the natural resources used to make wickable shirts. The primary resources used to make wickable shirts are cotton and polyester. None of these resources is found in Buhar province, which hosts the district of Panama, or Utlar Pradesh province, which hosts Lucknow district. If any of the regions had the ingredients readily available, then it would have an advantage. Question 2 Lucknow is the best location for AAA to locate its wickable shirt manufacturing plant. For a manufacturing company dealing in bulky raw materials and finishing goods, management of transportation costs is essential as their values can tear into a company's profits unless they are well managed. Bearing in mind that the shirts will need ...
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