Facility Location | 7 Key Factors that Influence

facility-location

Logistics and the supply chain involves more complex activities that require optimal strategic decisions in order to run the business operation more efficiently and effectively. The facility location is the most strategic and critical in the planning process. Facility location is the process of identifying the best suitable geographic location for a service or production facility. Selecting a suitable location for the facility will helps you to run your operations more economically and effectively.

its a branch of operations research with the optimal placement of facilities to minimize operational cost. facility location helps you to find the right suitable location for the manufacturing/production facility.

Facility Location | 7 Key Factors that Influence
Facility Location | 7 Key Factors that Influence

Factors that Influence Facility Location:

  • Environmental regulations
  • Access to customers, suppliers
  • Availability of Skill Labor
  • Transportation Facilities
  • Ease of doing business
  • Financial incentives offered by Central and State
  • Employee Security, welfare and public needs

Facility location planning is a critical strategic decision taken by the operations department.