Location Analysis Reporting
Location Analysis Reporting
Location Analysis Reporting
Analysis
Author: S. Anil Kumar & N. Suresh
Members:
Joyce Nicole B. Dela
Cruz
Dylan Frances F. Dela
Chapter
• IntroductionOutline:
• Need for Selecting a Suitable Location
• Factors Influencing Plant/Facility
Location
• Location Theories
• Location Models
• Locational Economics
INTRODUCTI
ON TO PLANT
LOCATION
WHAT IS PLANT
LOCATION?
Plant location or the facilities location
problem is an important strategic level
decision-making where the organization
will select a suitable location for its
business operation.
CONVERSION
PROCESS (MANUFACTURING
SYSTEM)
Conversion process is converting the
input (the raw materials, equipment, or
machineries used in the process) to make
the output (the final product).
E
X
A
M
P
L
E
THE SELECTION OF
LOCATION
The selection of location is a key-decision as large
investment is made in building plant and
machinery. It is not advisable or not possible to
change the location very often.
1. Identification of region
2. Choice of a site within a
region
3. Dimensional analysis
DIMENSIONAL
ANALYSIS
Dimensional analysis consists in computing the
relative merits (cost ratio) for each of the cost items
for two alternative sites. For each of the ratios an
appropriate weightage by means of power is given
and multiplying these weighted ratios to come up with
a comprehensive figure on the relative merit of two
alternative sites, that is:
are the different costs associated with a site M on the ‘z’
different cost items.
are the different costs associated with a site N and are the
weightage given to these cost items, then relative merit of the M
and site N is given by:
A. Tangible Reasons
B. Intangible Reasons
A. TANGIBLE REASONS
The tangible reasons for setting up an operations
facility abroad could be as follows: