Every business is facing the issue of selecting the suitable location for their factory plant.
Plant Location
Every business is facing the
issue of selecting the suitable location for their factory plant. Units
concerning both manufacturing as well as the assembling of the products are on a very
large scale affected by the decisions involving the location of the plant.
Location of the plant itself becomes a very important factor concerning service
facilities, as the plant location decisions are strategic and long-term in
nature. Plant location refers to the choice of region and the selection of a particular site for setting up a business or
factory.
An ideal location is on where the
cost of the product is kept to minimum, with a large market share, the least
risk and the maximum social gain. It is the place of maximum net advantage or
which gives lowest unit cost of production and distribution. For achieving this
objective, small-scale business can make use of location analysis for this
purpose.
Tags : Operations Management - Introduction to Operations Management
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