Chapter 8
Location Planning and Analysis
Topics covered
1. Need for Location Decisions, 361
2. Nature of Location Decisions, 362
- Strategic importance of location decisions, 362
- Objectives of location decisions, 362
- Location options, 362
3. General procedure for making location decisions, 363
4. Factors that affect location decisions, 363
- Regional factors, 365
- Community considerations, 367
- Site-related factors, 368
- multiple plant manufacturing strategies, 368
5. Service and retail locations, 369
6. Global locations, 372
7. Evaluating location alternatives, 376
- Locational cost-volume-profit analysis, 376
- Factor rating, 379
- Centre of gravity method, 379
Chapter Summary
Location decisions are of paramount importance in profit making organizations and
non-profit organizations alike. This chapter enumerates various factors which are to
be given importance while deciding on a location. Various Multi plant
manufacturing strategies like, product plant strategy, market area plant strategy and
process plant strategy and their subtle differences are worth studying. Importance of
global locations in the era of globalization is another topic of utmost importance.
Evaluation of location alternatives using Cost-Profit-Volume Analysis, Factor
Rating and Centre of gravity method are expected to be mastered by the student at
the completion of this chapter.
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Contact: Dr. Suresh Subramoniam, A253