LOCATIONAL ECONOMICS An ideal location is one which results in lowest production cost and least distribution cost per unit. These costs are influenced by a number of factors as discussed earlier. The various costs which decide locational economy are those of land, building, equipment, labour, material, etc. Other factors like community attitude, community facilities and housing facilities will also influence the selection of best location. Economic analysis is carried out to decide as to which locate best location. The following illustration will clarify the method of evaluation of best layout selection. From the following data select the most advantageous location for setting a plant for making transistor radios.
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What principles do you use to decide on the location and layout of a new or expanded site? What information do you need to consider before selecting a site location? How do you maximize inherently safer design with minimal impact on cost and schedule? How do you manage siting issues when limited space is available? How to you address security concerns in a new site?