engleski

Analysis of the significance of the location selection criteria

For any form of enterprise capacity planning represents an important component in the planning of overall business operations. Capacity does not affect only the possible volume of output. Besides, poorly planned capacity may generate unnecessary costs for the enterprise when excess capacity is not used, or limit the profits when capacity is insufficient to meet the demand. The selection of the business location is related to capacity planning. Not all businesses can make decisions about their location independently, but such decisions have a major impact on their operation. All available tools should be used when deciding on the location of a business. This paper uses the example of supermarkets and hypermarkets of Spar Croatia Ltd. in Osijek to analyze the capacity and location using the geographical information system (GIS). As a computer-based tool, GIS allows for the collection, storage, and presentation of demographic data on a map. It is an integrated system encompassing computer hardware, software, data, and trained staff to create geo-referenced data. Also, the authors surveyed store managers on the significance of particular criteria and analyzed the survey data of customers of different commercial chains. The results show that the most significant criteria for the choice of a location for store managers are: number and density of population, cost of the location, legal regulations and competition in the environment, and for customers: product price, current discounts, and distance, which indicates that the location of a shop is very important to customers. By using the ArcGIS Pro application, it was shown that if Spar Croatia Ltd. would like to expand its capacities, a suitable site would be in the eastern part of the City of Osijek.

capacity ; planning ; location ; geographical information system

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