Location Planning and Logistics 255 CASE STUDY: CELVIN FOODSTUFF ive a ve a Celvin FoodStuff operates a chain of mini conve I, So vence stores in downtown city settings, offering 0.2 beverages, snack food, and some fresh food items to ally missing pedestrian traffic. A typical Celvin Foodstuff half the size of the average convenience store, with no customer parking and almost no backroom area, as Celvin delivers stock directly to store shelves early each morning. The ideal FoodStuff store includes 100 square meters of space, with a busy city sidewalk passing immediately in front of its display windows. Because a FoodStuff store relies on impulse pur- chases from walk-in traffic, it is better located farther from similar stores that might reduce this traffic or invite price comparisons by shoppers. Locating on the corner of a city block is considered particularly beneficial, as this doubles the visibil ity of the FoodStuff to passing customers. Celvin FoodStuff rents each of its 27 current locations and is now considering adding a 28th store. Celvin management has identified three promising locations, each owned by a different commercial real estate company. The Factor Data table provides data on each location, designated by the name of the real estate rental company. Factor Data for Celvin FoodStuff Bay Holding Co. Martin & LeBlanc Factor Location Lin Agency Location Location Distance to nearest 300 meters 50 meters 400 meters competitor Size 90 sq. meters 180 sq. meters 80 sq. meters Rent $3, 100/month $2,200/month $2,500/month Corner site yes no no Questions 1. Prepare this data for a factor rating analysis by converting the information provided into appropriate scores. Explain any assumptions you made during this process. 2. If each of these factors is equally important to Celvin FoodStuff, which location should it choose to rent? 3. If rent were twice as important a factor as any of the other three, would your previ- ous recommendation change? If so, to what location? 4. If you could ask Celvin two questions for clarification before you finished your analysis and committed to a location, what would those questions be? BIBLIOGRAPHY Collins, J., and E. Jack. 2012. "Here or There? Deciding Where to Put Your Operations." Cor APICS Magazine 22(3 wistjens, M., and R. Lal. 2012, "Retail Doesn't Cross Borders: Here's Why and What to Do About It." Harvard Business Review April: 104-11