PROGRAMA DE FORMACIÓN REGULAR

DISEÑO DE PROYECTOS DE
INNOVACIÓN

2019-I
 LABORATORIO N° 01
TAMAÑO Y LOCALIZACIÓN
DE PLANTA

APELLIDOS Y NOMBRES Nota

Alumno (s):
Mamani Jahuira Saúl Antony

Profesor: Prof. James del Castillo

Programa Profesional: C2 Grupo: D

Fecha de entrega : 07 04 2019 Semestre: V

 SIZE AND LOCATION OF THE PLANT

1. INTRODUCTION:

The magnitude and characteristics of the market will give the first orientation to
define the level of production and, consequently, the investment. This manual
does not analyze markets in general or fish markets in particular. The market
component is not underestimated; and the importance of having appropriate
market information to start or expand any industrial enterprise is recognized.

1.1. REQUIRED INFORMATION ON MARKET STUDIES:

Market information is necessary to define the level of production, type of

products, technology required, etc. In practice, all industrial development
begins with a series of questions: How many tons of product can be sold? At
what price? To whom? What is the current offer? These questions can be
answered through a market study that will establish the size of the market by
estimating the quantities demanded of a product at certain prices (Samuelson,
1983). This analysis would be more complete if the variations in demand are
considered in terms of income, prices, demographic factors, changes in the
geographic distribution of the market and the influence of market size on
costs. Two examples of this type of analysis are presented in Appendix A
(Hotta, 1979, and Raizin and Reiger, 1986).

In the fishing industry, it is common to present a first analysis of market size

with a simplified methodology, making it difficult to have access to national or
international data to complete a more exhaustive study. It should be pointed
out that it is advisable to obtain as much information as possible from the
target market. The concept that supply is adapted to demand is universally
accepted. What is less apparent is that an exact understanding of the supply-
demand relationship is the main step for knowledge of the operation of the
entire economic system. Excess demand or supply may be created by actions
different from those of the market. Governments, for political or social
reasons, may decide that certain prices are very high or very low. The results
are government decisions, establishing maximum or minimum prices or taxes.
Without judging the adequacy or otherwise of these limits, supply-demand
relationships reveal why these limits create scarcity or abundance.

Three markets are involved in a distribution system: the input market, the
fresh fish market, intermediate products (for example, blocks of frozen fish)
and the final product market. In the first, variable inputs (ice, bait, labor) and
fixed inputs (engines, fishing gear) are purchased by fishermen who convert
them into fishing effort. A stock of fish will result from this process. Their
demand for inputs such as ice and bait is derived from the anticipated sale of
fish to intermediaries. In the second market, intermediaries buy, transform and
transport fresh fish, and incur costs of using ice, transportation, buildings,
freezers. The demand for fresh fish by the intermediaries of the small-scale
 fishery is derived from an anticipation of entry into the third market, for
example, from the sale of their processed product to consumers.

One of the problems that makes it difficult to determine the nature of fish
markets is their dynamics. This dynamic is due mainly to the seasonality of
the catches during the year, and to the changes in the volumes and
composition of the catches from year to year. In the medium and long term
also influence the changes in the alimentary habits, the introduction of new
species, economic reasons such as the increase in the cost of labor, or
technological, such as the lack of adequate packaging or the impossibility to
do properly operate a distribution system.

The amount of fish that flows from the capture sector to consumers, over a
period of time, depends on many factors, mainly the type of resource and the
method of capture, the amount of fish caught, the quantity demanded by
consumers , the existence of imperfections in the three markets, the level of
infrastructure (landing sites, roads, transport systems) and post-capture
losses (Stevenson et al., 1986).

Small-scale fisheries are characterized by a variety of marketing systems,

ranging from individuals who buy the fish as soon as it is landed and sold, to
quite sophisticated chains, involving a number of intermediaries, some type
of processing and the transport of fish to distant markets. Fish is bought and
sold at each stage in this process, consequently increasing the price that the
consumer eventually pays. In the process each participant assumes certain
financial risks in order to obtain some income.

The consumption of fish, as well as the frequency of consumption and the

variety of species consumed, is increasing in Europe and the US, as
consumers become more aware of their health. Also, the commercialization
of fish products has expanded much faster than that of agricultural products.
Average market prices increased as a result of increased availability of higher
value products.

1.2. LOCATION OF THE PLANT:

The cost of processing, selling and distributing a fishery product is significantly

affected by the location of the plant. If the market is large enough to admit
several alternatives, many of them can be eliminated when deciding the
technology to be used and the location. The density and regularity in the
production of raw materials are the most important considerations in the
choice of the location of the plant. If there are different possibilities, the
location analysis of the plant should be applied to choose the places that show
a better economic evaluation. The relative importance of the costs of the
inputs and their transport to the processing area, the processing costs and
the transportation costs of the final products to the consumption centers are
the three dominant economic geography forces. These determine if the
processing should be located where the supply of raw material is, in the
market or in intermediate places (Mensinkai, 1967).

In many cases, the installation of an industry can stimulate the production of

certain goods or the establishment of a sector of the population and it is
decided to locate the industry in an area precisely to promote this process. In
these cases, the problem of location is clearly linked to certain development
policies and development and decentralization programs. For example, in
Argentina, in recent years, fishing activity has been consolidating in the south,
in the coastal zone of Patagonia, given that the Argentine government has
introduced tax reductions for industries located in this region.

The availability of electricity must also be taken into account, and in some
cases, it is necessary to consider internal production if its cost justifies it. If
there is a lack of electricity, but there is abundant raw material, the elaboration
must be considered using techniques such as salting and drying artisanal to
transform these resources into edible products with low sales price and high
protein content.

Water is an indispensable input in all productive activities. Its influence as a

factor for the location of the plant depends in essence on its availability. This
influence will be minimal if there is water in the quantity and quality required
in all the neighborhoods of the different possible locations. In case there is
one in some, but not in others, it can become an element of great weight to
determine this location.