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the strategic location of the sawmill and since the capacity of the sawmill was restricted in 1970 when it was first built buying it 1987 and expanding the operation such as adding drying kilns, a planner mill for finishing on site and a warehouse for storing the finish lumber to improved production capacity and the fact that the plant has the basic equipment and the has company owned forests in the area were more economically viable.

决定扩展的因素-Factors deciding the expansion

The timing in making a decision to expand a business is vital, as you need to carefully study the fiscal benefits of such expansion such as assessing having the cash for the investment to cater for the additional inventory, new facilities or equipment. At Georgia-Pacific the various factors considered in deciding whether to buy and expand the sawmill in Florida for example are

Market conditions: Florida has an excellent market condition such as the speedy growth of population and the boom in home construction because of these strategic position of the location of Florida gave Georgia-Pacific an edge over their competitors

Raw materials Georgia also considered this site because it own forest in the area that also had other position of privately owned timber.

Environment- That the other major factors to consider was legislation and government policies regarding the environment Georgia Pacific considered this factor and assessed the environmental regulation of Florida and find out that Florida has more strict environmental regulations that make it hard to build a new plant than to acquire an existing plant.

Economics- This is a major factor to considers when planning for capacity expansion as this affect the economic viability of the organization. Georgia pacific has considered this factor by analysing the return on investment when acquiring facilities and found out that acquiring and expanding was much easier and economically viable that building new facilities.

Labor- The availability of labor both skill and unskilled is very important when considering making a decision for capacity expansion. As for Georgia pacific the nearby facility mean that the sawmill could draw some trained personnel.

Equipment-As for a long term capacity expansion the availability of equipment to carry the operation is a major factor to consider. For Georgia pacific the already existing sawmill had the vital required equipment and facilities such a functioning road system, a nearby rail road spur, and electricity facilities.

Overall at Georgia pacific acquisition of the sawmill offered exceptional potential for capacity expansion and the sawmill was expanded in 1998 hence greatly contributed to the success of the Georgia pacific.

What other factors might the company have considered

Other factors include

设施的位置决定-Facilities location decision

The decision on where to locate facilities is the most important factors in capacity planning and its where the success of the company depends. Facility location involves organisation seeking to locate, relocate or expand their operation, the decision process encompasses the identification, analysis and evaluation of a selection among alternative,

Since at Georgia Pacific facility location mostly involves long term