Page 235 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management Dilfraz Singh, Lovely Professional University

Notes Unit 12: Facility Location

CONTENTS
Objectives
Introduction

12.1 Need for a Facility Location Planning
12.2 Nature of Location Decisions
12.3 Factors Affecting Location Decisions

12.3.1 Factors Affecting Manufactured Products
12.3.2 Factors Affecting Service Products
12.4 Selection of Site for the Plant
12.4.1 Country
12.4.2 State/District

12.4.3 Plant Location
12.5 Procedures for Location Decisions
12.5.1 Facility Master Plan

12.5.2 Impact Planning
12.5.3 Site Evaluation
12.6 Summary
12.7 Keywords
12.8 Review Questions

12.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Describe the need and nature of facility location;
 Explain the factors affecting location selection;

 Discuss the procedures for location decisions.

Introduction

Where will the production happen? How to choose the facility location? Is there any ideal
facility location? These are the questions that arise in every manager’s mind while setting up a
new plant or shifting an existing plant. There are many other detailed issues related to plant
location that confront a production manager. Let us study the different aspects of this decision,
which is becoming increasingly important in the current context.

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