The fundamental objective is to maximize the benefit of location to the firm.docx - The fundamental objective is to maximize the benefit of location to

The fundamental objective is to maximize the benefit of location to the firm.docx

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The fundamental objective is to maximize the benefit of location to the firm. For industrial location decisions, the focus is frequently on minimizing cost, because cost often varies dramatically from one location to another. Service location decisions focus on maximizing revenues. Service location alternatives may vary little in cost, but have dramatic differences in revenue or volume, because of differences in population, income, traffic count, or other variables. (The strategic importance of location, moderate).A good location is of ultimate importance in ensuring that the firm is close to the raw materials production and also contingently located close to the markets. Good access to mode of transportation such as roads
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