Reasons and Importance of location decisionsFactors affecting location decision of service, andmanufacturing organizationsTechniques of location analysis: Qualitative and quantitativeanalysis;Concept on layoutTypes of layout: Product layout , process layout , cellularlayout , fixed position layout;Designing process layout.
The need and importance of location decision often depends on thetypeof business.For industrial location decisions, the strategy is usuallyminimizing costs,although innovation and creativity may also be critical.For retail and professional service organizations, the location strategyfocuses on maximizing revenue.Warehouse location strategy, however, may be driven by acombination ofcost and speed of delivery.Firms such asbanks, fast-food chains, supermarkets, and retail storesview locations as part of marketing strategy, and they look for locationsthat will help them toexpand their markets.The objective of location strategy is tomaximize the benefit of location tothe firm.Location decisions often have animpact in investment requirements,operating costs and revenues, and operations.A poor choice of location might result inexcessive transportation costs, ashortage of qualified labor, loss of competitive advantage, inadequatesuppliers of raw materials,or some similar condition that isunfavorable tooperations.
Some basic reasons/importance of location decision canbe highlighted with the help of following point:Production and operating cost reductionsQuality and timely production are possible.Helps in value and profits increment.Helps inexpanding their business or to set up newbranches.Helps in best utilization of available resources.Helps in adoptingchanges and development of newtechnology.Helps in increasinggoodwill or imageof organization.Helps in increasingcompetitiveness.Helps in gainingcompetitive advantages.
Figure 4.1: Location Selection DecisionSelection of Region orAreaSelection of CommunitySelection of the Site•Availability of RawMaterials•Location of Markets•Labour Supply•Transportation Facilities•Climate and Taxes•Power Sources•Governmental Policiesetc.•Labour Facility•Quality of Life•Community & LabourAttitudes•Local Taxes andRestrictions•Finance and ResearchFacilities etc.Factors AffectingLocation Decision•Soil, Size andTopography•Easy Availability ofCheap Land•Transport Facility•Disposal of WasteMaterials•Water Supply•Risk of Uncertaintiesetc.
1. Simple Comparative Chart AnalysisSimple comparative chart is one of the techniques of analyzing intangiblefactors for selecting facilities location. The following steps should befollowed:Step 1:Recognize the critical intangible factors affecting location decision.
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Term
Spring
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Baneshwor
