Location facilities

Location facilities

Proposed factory building is an important consideration in operation management. It is an important strategic level decision-making for an organisation. It deals with the questions such as ‘where our main operations should be based?’ The selection of location is a key-decision because large amount of investment is required in building plant and machinery. An improper location of plant may lead to waste of all the investments made in plant and machinery. Hence, location of plant should be based on the company’s future plan about expansion, diversification, nature of sources of raw materials and many other factors. The very purpose of the location study is to identify the optimal location facility that will results in the greatest advantage to the organization.

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