Facility location

Er.Sartaj Singh Bajwa

 Factors Affecting the
Location Decision
 Economic
 Site acquisition, preparation and construction
costs
 Labor costs, skills and availability
 Raw Material costs and availability
 Transportation costs
 Taxes

Er.Sartaj Singh Bajwa

 CONTD.
 Economic
 Technology
 Human Resources
 Utilities ( Electricity ,water , drainage etc )
 Banking Facilities
 Storage facilities

Er.Sartaj Singh Bajwa

 CONTD
 Non-economic
 Labor attitudes and traditions
 Training services
 Community’s attitude
 Schools and churches
 Recreation and cultural attractions
 Amount and type of housing available
 Environment Standards

Er.Sartaj Singh Bajwa

 CONTD
 Other
 Climate
 Political Stability
 Government Regulation
 Unionization

Er.Sartaj Singh Bajwa

 Some Reasons the
Facility Location Decision Arises
 Changes in the market
 Expansion
 Contraction
 Geographic shift
 Changes in Costs
 Labor skills and/or costs
 Materials costs and/or availability
 Utility costs
Er.Sartaj Singh Bajwa
 CONTD.
 Risk
 Political Risk
 Economic Risk
 Social Risk
 Changes in infrastructure
 Legal System
 Transportation
 Technology
Er.Sartaj Singh Bajwa
 Significance Of Location
Decision
 Physical Characteristics
 Whether or not power is purchased
 Heating & Ventilation
 Storage space
 Types of carriers
 Operating Costs
 Cost of labor & taxes
 Cost of land & fuel
Er.Sartaj Singh Bajwa
 Analyzing Location Decisions
Quantitative Approaches
 Center of Gravity Method

 Location Breakeven Methods

 Factor Rating

 Load Distance

Er.Sartaj Singh Bajwa