Question: The results from a feasibility study showed that constructing a new plant would have the best economic feasibility for an organization. However, construction plus relocation

The results from a feasibility study showed that constructing a new plant would have the best economic feasibility for an organization. However, construction plus relocation time will prevent the organization from meeting its time-to-market strategic objective. Assuming viable leasing and building spaces are available, which of the following should the facility manager recommend?

a. Lease and modify an existing facility (even if it costs more but is still economically feasible), as long as it gets production capacity available soon enough to meet the organization's time-to-market objectives.

b. Build the new facility on the original schedule because it is more important to meet long-term cost goals than a time-to-market objective.

c. Cancel the strategic plans and re-perform strategic facility studies until a solution is found that can feasibly address all strategic objectives.

d. Build the new facility but rush construction and relocation in order to meet time-to-market objectives even if it significantly increases risks of project failure.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!