network design decisions
include the assignment of facility role, location of manufacturing, storage, or transportation-related facilities, and the allocation of capacity and markets to each facility
macroeconomic factors
include taxes, tariffs, exchange rates, and shipping costs that are not internal to an individual firm
tariffs
any duties that must be paid when products and/or equipment are moved across international, state, or city boundaries
tax incentives
a reduction in tariffs or taxes that countries, states, and cities often provide to encourage firms to locate their facilities in specific areas
free trade zones
duties and tariffs are relaxed as long as production is used primarily for export
positive externalities
occur when the collocation of multiple firms benefits all of them
hard infrastructure requirements
the availability of suppliers, transportation services, communication, utilities, and warehousing facilities
soft infrastructure requirements
the availability of a skilled workforce, workforce turnover, and the community receptivity to business and industry
single source
supply chain networks in which a market is supplied from only one factory