Answer to Question 1
Operations managers check the adequacy of utilities, which involves ensuring that the supply of electricity is reliable and clean water is available in the location of a business facility. They also consider the adequacy of the land available for a facility along with the cost of the land. They take into account labor market conditions such as the cost of labor and availability of skilled labor. Operations managers also consider whether the location is near customers and suppliers and whether appropriate transportation is available nearby. They also consider the availability of adequate healthcare facilities and the climatic conditions of the location. Moreover, they take into account the local government support and considerations about local taxes, fees, and regulations.
Answer to Question 2
Operations management is concerned with managing all of the activities involved in creating value by producing goods and services and distributing them to customers. When operations managers do their job well, their firms produce the right goods and services in the right quantities and distribute them to the right customers at the right time-all the while keeping quality high and costs low. The decisions of operations managers can have a major impact on a firm's revenues and its costs, and thus on its overall profitability.
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