What Factors Do You Need To Consider When Choosing A Plant Location?

What are the location factors?

Location factors are the sum of all factors that an enterprise considers when choosing a location, for setting up a new plant, office, warehouse or distribution centre….Location factorsInfrastructure.Subsidies.Taxes.Access to resources.Lease Costs.Labor Costs.Customs duties.Buying power.More items…•.

What are the 7 location factors for industry?

Factors responsible for location of Industries Some of them are: raw material, land, water, labor, capital, power, transport, and market.

What is a location strategy?

A location strategy is a plan for obtaining the optimal location for a company by identifying company needs and objectives, and searching for locations with offerings that are compatible with these needs and objectives. …

What is the importance of location decision?

Location decisions are often important – to both large and small businesses. The location decision has a direct effect on an operation’s costs as well as its ability to serve customers (and therefore its revenues). Also, location decisions, once made, are difficult and costly to undo.

Why plant location is important?

Selection of appropriate location is necessary due to following reasons: Plant location partially determines operating and capital cost. It determines the nature of investment. Each plant location requires some basic facilities like transportation, availability of water, electricity, fuel, cheap labors etc.

What factors should a business consider when choosing a location?

Entrepreneur Jake Fox reveals the key factors a business needs to consider when selecting a new location.Accessibility. Does your business rely on frequent deliveries? … Security. … Competition. … Business Rates. … Skill base in the area. … Potential for growth.

What factors affect plant location?

Some of the major factors which affect plant layout are: (1) Policies of management (2) Plant location (3) Nature of the product (4) Volume of production (5) Availability of floor space (6) Nature of manufacturing process and (7) Repairs and maintenance of equipment and machines.

What is an ideal plant location?

Plant location refers to the choice of the region where men, materials, money, machinery and equipment are brought together for setting up a business or factory. … While taking plant location decision organizations need to consider various factors such as availability of men, materials, money, machinery and equipment.

What are the objectives of plant location?

Location decision is based on the organisations long-term strategies such as technological, marketing, resource availability and financial strategies. The objective of plant location decision-making is to minimise the sum of all costs affected by location.

What are the factors that affect the choice of location?

The main factors that affect location decisions include regional factors, community considerations, and site-related factors. Community factors consist of quality of life, services, attitudes, taxes, environmental regulations, utilities, and development support.