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Facility location
 

Facility location

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    Facility location Facility location Presentation Transcript

    • Facility location Er.Sartaj Singh Bajwa
    • Region Location Decision
      • Corporate desires
      • Attractiveness of region (culture, taxes, climate, etc.)
      • Labor availability, costs, attitudes toward union
      • Cost and availability of utilities
      • Environmental regulations of state and town
      • Government incentives
      • Proximity to raw materials & customers
      • Land/construction costs
      Er.Sartaj Singh Bajwa
    • Site Location Decisions
      • Site size and cost
      • Air, rail, highway, waterway systems
      • Zoning restrictions
      • Nearness of services/supplies needed
      • Environmental impact issues
      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 and employment 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
        • Finds best distribution center location
      • Location Breakeven Methods
        • Special case of breakeven analysis
      • Factor Rating
      • Load Distance
      Er.Sartaj Singh Bajwa