Facility Location Considerations (Operations) - Explained
What are the considerations for facility location?
Written by J. Mance Gordon
Updated at April 9th, 2022
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What are the Considerations for a Facility Location?
Facility location considerations include:
- Proximity to Customers: This relates to the cost of delivery of product or service.
- Proximity to suppliers: This involves the need for raw materials and resources. It also involves logistics channels and costs.
- Proximity to labor: This involves population, skills, and wage/benefit costs.
- Government policy: This involves zoning laws, tax policies, activity regulations, etc.
- Availability of the necessary infrastructure: This involves access to usable space, logistics systems, etc.