This document discusses facilities planning and location analysis. It summarizes BMW's decision to locate a new plant at an existing facility in Regensburg, Germany. Reasons for this selection included the facility's track record, flexibility to shift production, agility of the production team, saving time, developing skills of new recruits, and accessibility along with cost effectiveness and political climate. It defines plant layout as arranging machines, equipment and facilities to ensure efficient material flow from receipt to output. An optimal layout impacts production optimization, minimizing material handling time and costs, flexibility, flow, land and building use, effective labor utilization and improved worker quality of life. Product, production process and production volume determine layout.