Tuesday, May 13, 2014

Facility Location Planning - Factors affecting Facility Location Planning

Factors affecting Facility Location Planning

  1. Near to customer – The transportation and other overheads are likely to increase with distance between plant and market.
  2. Near to raw material – It will ensure regular supply of the raw material and reduce transportation cost.
  3. Good transport facility – The region well connected with Rail, Road, Water and Air transport system is considered to be more appropriate for the location of the facilities.
  4. Availability of power supply – The regular supply of the power ensures no stoppage in work.
  5. Basic facilities – Basic facilities ensures quality of work life and attract the good labor.
  6. Government Policies – Favorable government policies creates favorable atmosphere for the purpose of the establishment of industries.
  7. Environmental considerations – Good climate and natural resources is important for the industries.
  8. Easy availability of cheap land
  9. Less construction cost
  10. Availability of cheap, skillful and efficient labor


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