FACILITY OR PLANT LOCATION

FACILITY OR PLANT LOCATION
It is the systematic process of determining a geographic
site for a firm’s operations. Managers of both service and manufacturing
organizations should consider the desirability of a particular site, including
proximity to customers and suppliers, labour costs, and transportation costs.
Location conditions are difficult to measure. Tangible cost based factors such as
wages and products costs can be quantified easily. On the other hand nontangible
features, which refer to such characteristics as reliability, availability
and security, cannot be measured exactly in quantitative forms.