please make the sentence about Lessons learned from the case according to the questions below:

1. What do you think are the factors that should be evaluated in determining Olivas new plant location?

As we know from the case study that the main purpose of Olivas is to develop a decision model in order to support Olivas decision about the new plant location of the manufacturing facility that decreases the transportation cost of the companys supply chain.

According to Klose & Drexl (2005), facility location models can be generally classified as: continuous or discrete problem solution; minsum or minmax objectives; with or without capacity constraints; single or multi-stage; single or multi-product; demand elasticity; single or multi-period; and deterministic or stochastic. The issue of Olivas case based on a continuous location problem because of the macroscopic nature of the pretended analysis, and also because the company does not consider limiting the solution to a set of locations. This type of problem is very useful in the initial stage of the location decision process, the phase in which the company currently finds itself. Continuous location problems are characterized by theirs possibility to locate facilities on every point in the plane.

From that problem, we can evaluate the factors in determining Olivas new plant location. The transportation cost and the location of the packing material suppliers are the factors that can influence the final result. These factors are very relevance and the Olivas company should take the factors seriously for the final decision. Olivas also need to learn about the feasibility of opening the new facility, and for the further approach, the costs of opening a new facility and other variable should included to the model.

2. Which is the highest rated of the four European cities under consideration, using the table?

Factors	European City Under Consideration				Total	Importance
	A	B	C	D
Demographics	60	70	65	55	250	10
Proximity to Olive Oil Supplier	65	72	80	61	278	25
Proximity to Packaging Supplier	70	65	70	75	280	25
Transportation	80	80	70	85	315	10
Low Political Risk	85	80	65	85	315	10
Plant Capacity	90	70	75	85	313	20
Total	450	437	425	446

As we can see from the table above, there are 6 factors that mention to evaluated the Olivas decision and 4 European city under consideration also the importance of each factors. From the 6 factors, we know that factor transportation and low political risk are the highest factor from 4 European city under consideration. While the lowest factor is demographics.

Based on the European city under consideration, we can conclude that City A has the highest European city under consideration according to the 6 factors. While, city C has the lowest score.

From the score of importance, we can interpret that proximity to olive oil supplier and proximity to packaging supplier are the highest factors from others.

3. Why does Oliva put such serious effort into its location analysis?

12. Relationship with Suppliers
13. Types of Employees Provided for The Company
14. Types of Customers
15. The Legal, Political, and Economical Environment in That Location
16. Its a Long-term Decision

12. Many Resources and Cost Issues are Difficult to Change

12. Has a Major Impact on the Fixed Cost and Variable Cost of a Company

4. Under what conditions do you think Oliva prefers to open a new plant rather than supplying the Europe market from their current location?

• When there are various risk factors and differences in norms, preference, and business practice
• When the Olivia wants to shape and mould to suit the international/local market
• For rapid expansion without an enormous outlay of capital
• For achieving fast market penetration