engleski

Location Analysis in Management Decision Making

The paper aims to present the importance of location analysis and decisions, as an indispensable base for management decision making. Location commits the organization to long lasting financial, employment and distribution patterns, affect the costs of doing business and the flow of goods and services. Hence, location analysis requires a systematic decision process which involves qualitative and quantitative approach. Basic qualitative factors which determinate location, such as natural, historical, social, technological factors are theoretically presented. Quantitative approach is presented with mathematical model of locating hub facilities that minimizes transportation costs. Methods used for problem solving are the (multi)centre of gravity and the p-median method. Based on these theoretical models a real-world problem representing a Croatian trade company for electro-technical products is solved.

location; management decision making; location methods; transport cost optimization

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