Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken.
What is meant by plant location and site?
Plant location is the choice of region and the selection of a particular site for setting up a plant. If a company selects the right location, it may have adequate customers, workers, transportation, materials, and so on. Consequently, location often plays a significant role in a company’s profit and overall success.
What is plant location How important is a plant’s location to its profitability?
Importance of Plant Location (i) Location of plant partially determines operating and capital costs. It determines the nature of investment costs to be incurred and also the level of many operating costs. (ii) Each prospective location implies a new allocation of capacity to respective market area.
What are the factors affecting choice of location?
Let us discuss these in some details.
- (i) Availability of Raw Materials:
- (ii) Proximity to Market:
- (iii) Infrastructural Facilities:
- (iv) Government Policy:
- (v) Availability of Manpower:
- (vi) Local Laws, Regulations and Taxes:
- (vii) Ecological and Environmental Factors:
- (viii) Competition:
Why plant location is important?
The objective of plant location decision-making is to minimise the sum of all costs affected by location. Plant location is important because of the following: (ii) Location influences capital investment and operating costs. Location decisions are strategic, long-term and non-repetitive in nature.
What are the objectives of plant location?
Objectives of plant layout
- Minimizing handling of materials.
- Maintaining flexibility of operations.
- Ensuring optimum utilization of men, materials, equipment and available space.
- Achieving good work flow and avoiding accumulation of work.
- Minimizing delays and bottlenecks in the production system.
What are the location factors?
Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.
Which are the major factors affecting plant location?
1. Selection of Region:
- Availability of Raw Materials:
- Proximity to Markets:
- Transport Facilities:
- Availability of Power, Fuel or Gas:
- Water Supply:
- Disposal Facility for Waste Products:
- Climatic and Atmospheric Conditions:
- Availability of Labour:
What are the factors that affect plant location?
This article throws light upon the ten important factors affecting plant location. The factors are: 1. Selection of Region 2. Township Selection 3. Question of Urban and Rural Areas 4. Location of a Factory in a Big City 5. Location of an Industry in Small Town 6. The Sub-Urban Location for a Factory 7.
What’s the difference between plant location and facility location?
Plant location is the choice of region and the selection of a particular site for setting up a plant. Facility location is a critical strategic decision.
Which is the best description of plant location?
Facility location is also called plant location. Plant location is the choice of region and the selection of a particular site for setting up a plant. Facility location is a critical strategic decision.
What are the factors that influence the selection of industrial location?
Selection of industrial location is a strategic decision. It is a onetime decision and not be retracted again and again without bearing heavy costs. Nonetheless, regardless of the type of business/enterprise, there are host of factors but not confined to the following only that influence the selection of the location of an enterprise:
