3. Facility Location is the right location for the
manufacturing facility, it will have sufficient access to the
customers, workers, transportation, etc. For commercial
success, and competitive advantage.
3
5. 1. Flexibility
2. Change in available resources
3. Shift of demand
4. Development of new technology
5. Focus
6. Demand Management
5
6. 1. Availability of labors
2. Availability of services
3. Availability of supplies
4. Transportation and communication facilities
5. Suitable land and business climate
6. Cost and availabilities of utilities
7. Government regulation
8. Trade blocks
6
7. 1. Site Size And Cost
2. Air, Rail, Highway And Waterway Systems
3. Zoning Restriction
4. Nearness All Service (i.e. Fire Service,
Hospital , Security)
5. Environmental impact issues
7
8. 1. Factor rating method
2. Locational break-even analysis
3. Center of gravity method
4. Transportation model
5. Load distance method
8
9. 1. Product plant strategies
2. Market area plant strategies
3. Process plant strategies
Multiple Plane
Strategies
Product plant
strategies
Market area
plant
strategies
Process plant
strategies
9
10. Changes in The Market (i.e.- Expansion, Geographical
Shift)
Changes in Cost(i.e.- Labor Cost, Material Cost, Utility
Cost)
Political Risk
Transportation Risk
Economic Risk
10