Professional Documents
Culture Documents
L - T- P- C : 3- 0- 2- 3
Facility Location
Facility location is the process of identifying the best
geographic location for a service or production
facility.
Types of Facilities
Heavy-manufacturing facilities
Light-industry facilities
Factors in Heavy
Manufacturing Location
Construction costs
Land costs
Raw material and finished goods
shipment modes
Proximity to raw materials
Utilities
Labor availability
Factors in Light
Industry Location
Transportation costs
Proximity to markets
Frequency of delivery required by
customer
Land costs
Easily accessible geographic
region
Education and training capabilities
Proximity to customers
Location is everything
Government stability
Government regulations
Political and economic
systems
Economic stability and
growth
Exchange rates
Culture
Climate
Export import regulations,
duties and tariffs
Regional Location
Factors
Labor (availability,
education, cost, and
unions)
Proximity of
customers
Number of
customers
Construction/leasing
costs
Land cost
Business climate
Community services
Incentive packages
Government
regulations
Environmental
regulations
Raw material
availability
Commercial travel
Climate
Infrastructure (e.g.,
roads, water, sewers)
Quality of life
Taxes
Availability of sites
Financial services
Community
inducements
Proximity of suppliers
Education system
Center-of-gravity
Load-distance