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    Facility Location: 1. Concept 2. Location Factors 3. Urban & Rural Location 4. Procedure

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    Sushant Bhandari
    The document discusses factors to consider when selecting a facility location, including primary factors like availability of raw materials, labor, and transportation access, as well as secondary factors like climate and local incentives. It contrasts urban and rural locations, noting urban areas have better educational and utility access while rural areas have lower costs and fewer restrictions. The procedure for facility location planning involves preliminary screening of potential locations based on resources and local conditions, then more detailed analysis and factor rating systems to evaluate each location alternative.

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    Facility Location: 1. Concept 2. Location Factors 3. Urban & Rural Location 4. Procedure

    Uploaded by

    Sushant Bhandari
    10 views8 pages
    The document discusses factors to consider when selecting a facility location, including primary factors like availability of raw materials, labor, and transportation access, as well as secondary factors like climate and local incentives. It contrasts urban and rural locations, noting urban areas have better educational and utility access while rural areas have lower costs and fewer restrictions. The procedure for facility location planning involves preliminary screening of potential locations based on resources and local conditions, then more detailed analysis and factor rating systems to evaluate each location alternative.

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    Facility Location

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    The document discusses factors to consider when selecting a facility location, including primary factors like availability of raw materials, labor, and transportation access, as well as secondary factors like climate and local incentives. It contrasts urban and rural locations, noting urban areas have better educational and utility access while rural areas have lower costs and fewer restrictions. The procedure for facility location planning involves preliminary screening of potential locations based on resources and local conditions, then more detailed analysis and factor rating systems to evaluate each location alternative.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    10 views8 pages

    Facility Location: 1. Concept 2. Location Factors 3. Urban & Rural Location 4. Procedure

    Uploaded by

    Sushant Bhandari
    The document discusses factors to consider when selecting a facility location, including primary factors like availability of raw materials, labor, and transportation access, as well as secondary factors like climate and local incentives. It contrasts urban and rural locations, noting urban areas have better educational and utility access while rural areas have lower costs and fewer restrictions. The procedure for facility location planning involves preliminary screening of potential locations based on resources and local conditions, then more detailed analysis and factor rating systems to evaluate each location alternative.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 8

    Facility Location

    Contents: 1. Concept 2. Location factors 3. Urban & Rural Location 4. Procedure

    Facility Location
    A facility (plant) is a place where men, materials, money, machinery and equipment, etc., are brought together for manufacturing product.

    Location Factors
    Primary Factors Availability of raw materials Nearness to market Transport facility Availability of labor, fuel and power Availability of water Secondary Factors Soil and climate Industrial atmosphere Financial and other aids Availability of facilities like housing, schools etc Momentum of an early start

    Urban and Rural Area Location


    Urban Educational facilities Cost of land Restriction on construction Municipal and public utility services Tax rate Cost of labor Rural Fewer Cheap rates Few restrictions Unavailable

    Quite low Cheap rates

    Procedure for Facility Location Planning


    The preliminary screening Detailed analysis
    Factor ratings

    Preliminary Screening
    Resources Land availability and cost Local Conditions Construction cost Organized industrial complexes Quality of life: climate, housing, recreation, schools Taxes

    Raw material
    Subcontractors Transportation facilities Utility availability and rates

    Sources of Information
    Detailed analysis Factor Rating: Steps
    List out most relevant factors in location decision Rate each factor Factor rating * location rating Sum of the product yields the total rating score for that location

    Factor ratings for each Location Alternative


    Factor Factor Rating Location rating Product of Rating

    Tax advantage Suitability of labor skills Proximity to customers Proximity to suppliers Adequacy of water Receptivity of community Quality of educational system Access to rail and air

    4 3 3 5 1 5 4 3 2

    8 2 6 2 3 4 1 10 7

    32 6 18 10 3 20 4 30 14

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