ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -After determining where the demand for goods and services is greatest, management must select a location for the facility that will supply that demand. Locating near markets is particularly important when the final goods are bulky or heavy and outbound transportation rates are high.

Detailed explanation-2: -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.

Detailed explanation-3: -Location Selection Factors For a company which operates in a global environment; cost, available infrastructure, labor skill, government policies and environment are very important factors. A right location provides adequate access to customers, skilled labors, transportation, etc.

Detailed explanation-4: -Location Decision General Procedure These factors will differ depending on the type of facility but there will usually be only a few important factors that will greatly impact the decisions. These factors include accessibility of raw materials, proximity to consumers, transportation costs, and space requirements.

Detailed explanation-5: -Accessibility. Does your business rely on frequent deliveries? Security. Competition. Business Rates. Skill base in the area. Potential for growth. 16-Oct-2017