Location decisions

1,307 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,307
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
23
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Location decisions

  1. 1. A REPORT ON LOCATION DECISIONSPRESENTED BY: SATYABRATA PRADHANKRUPAJAL BUSINESS SCHOOLREGD NO:11KB009BATCH.NO:-2011-13
  2. 2. 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
  3. 3. Site Location Decisions� Site size and cost� Air, rail, highway, waterway systems� Zoning restrictions� Nearness of services/supplies needed� Environmental impact issues
  4. 4. 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
  5. 5. CONTD.� Economic ◦ Technology ◦ Human Resources ◦ Utilities ( Electricity ,water , etc ) ◦ Banking Facilities ◦ Storage facilities
  6. 6. 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
  7. 7. CONTD� Other ◦ Climate ◦ Political Stability ◦ Government Regulation ◦ Unionization
  8. 8. Some Reasons theFacility 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
  9. 9. CONTD.� Risk ◦ Political Risk ◦ Economic Risk ◦ Social Risk� Changes in infrastructure ◦ Legal System ◦ Transportation ◦ Technology
  10. 10. 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
  11. 11. 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
  12. 12. THANK YOU

×