Description
I want two different answers
CREATIVE THINKING
Plant location or the facilities location problem
is an important strategic level decision-makingfor an organization. One of the key features of a conversion process (manufacturingsystem) is the efficiency with which the products (services) are transferred to the customers.This fact will include the determination of where to place the plant or facility.The selection of location is a key-decision as large investment is made in building plant andmachinery. It is not advisable or not possible to change the location very often. So, an improper locationof plant may lead to waste of all the investments made in building and machinery, equipment.Before a location for a plant is selected, long range forecasts should be made anticipatingfuture needs of the company. The plant location should be based on the company?s expansionplan and policy, diversification plan for the products, changing market conditions, the changingsources of raw materials and many other factors that influence the choice of the locationdecision. The purpose of the location study is to find an optimum location one that will result inthe greatest advantage to the organization.
The need for selecting a suitable location arises because of three situations.
I. When starting a new organization,
i.e
., location choice for the first time.
(3 Marks)
II. In case of existing organization.
(3 Marks)
III. In case of Global Location
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Q. What considerations would you keep in mind in the above three situations so far as the decision of selection of plant location is concerned?
