Facility Design, Labor Considerations, Workforce
Skills, Infrastructure and Utilities, Legal and
Environmental Regulations, Resource
Availability, Local Risks, Climate and Geography,
Transportation and Trade Agreements,
Distribution Channels, Supplier Base, Hyper-
Competitive Markets, Design-Marketing-SCM
Integration, Strategic, Design, and Operating
Decisions, Line Flow, Assembly Lines,
Continuous Flow Systems, Flexible Flow, Hybrid
Flow, GT Cells, OWMM Cells, Fixed Position
Layout, Bottlenecks, Task and Work Elements
Exam Questions Verified and Provided with
Complete A+ Graded Rationales Latest Updated
2026
Key Issues Manufacturing layout
• Labor - Wages, technical skills, work ethic, culture, language • Facility, infrastructure, and utilities - Are
the site and available facilities adequate for the intended purpose?
• Laws - Labor, Intellectual property, environmental regulations, criminal
• Resource availability - Supplies, raw materials, fuel, energy • Local risks - Crime, law enforcement,
politics,
• Climate - Will the temperature and weather conditions be appropriate for the product, machines, and
employees?
• Transportation and transportation infrastructure
• Trade agreements, tariffs, and quotas
Established channels of distribution
Channels of distribution represent the chain of organizations that help bring a product into the hands of
the end user. This might include packaging companies, delivery companies, warehouses, distribution
, centers, and perhaps even suppliers. So, established channels of distribution implies that a certain chain
of organizations have an established history of working together and perhaps coordinating supply chain
actions. This advanced relationship might imply that transactions occur regularly and perhaps more
fluidly.
Established Supplier Base
A company's supplier base is the collection of companies from which an organization presently
purchases products and/or services. So, an established supplier base implies that an organization has a
group of companies with which they have developed a working relationship. This advanced relationship
might imply that transactions occur regularly and perhaps more fluidly.
Hyper competitive markets
This can refer to an industry that is heavily concentrated in a particular region, where the companies
compete fiercely. This intense and concentrated competition may result in rapid innovation but short
cycles of competitive advantage.
relationship between design, marketing, and SCM
Marketing identifies a target market. Designers and engineers work to develop products that satisfy the
needs of the target market. Supply chain must then buy parts, manufacture hundreds or thousands of
those end items, and then deliver them into the hands of the customer.
Without the coordination of marketing, design, and supply chain, companies may manufacture a great
product that is not valued by their target market.
• Perhaps a company may know their target market, but designers fail to consider their desires and
preferences. Imagine if Starbucks started selling a line of premium deli meats. Starbucks customers may
love deli meats, but they just may not want to buy them at Starbucks, nor are Starbucks facilities
equipped to store and sell deli meats.
• Imagine if McDonald's developed a premium half-pound make-to-order hamburger that costs $10 and
took 10 minutes to prepare. What might be the impact on the kitchen, the drive-thru lines, etc. •
Perhaps, Apple creates beautiful cell phones with wonderful features their target market desires, but
the parts are low-quality and the phones are neither durable nor reliable. In modern companies
coordination and integration are vital to long-term success.