Plant location is an important management function of deciding the location for a plant with the best operating economy and effectiveness. Location decision is influenced by long-term strategies of the organization such as marketing, resource availability, technological, and financial strategies. The decision of Plant location includes two-steps; (a) selection of general region and (b) the selection of site within the area.
The main aim of plant location, decision-making is to reduce all costs related to location.
The Factors influencing location selection:
- Availability of raw materials
- Nearness to the market
- Availability of power
- Transport facilities
- Suitability of climate
- Government polity
- Competition between states
- Availability of labor
- Civic amenities for workers.
- Existence of complementary and competitive industries.
- Finance and research facilities
- Availability of water and fire-fighting facilities
- Local taxes and restrictions
- Personal factors
- Soil, size, and topography
- Disposal of waste
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