3 Questions
Explain the four steps in the location decision process as outlined in the text.
The four steps in the location decision process are: Step 1: Investigation, where organizations investigate their requirements and conduct an internal SWOT analysis. Step 2: Identification, where potential locations for the facility are identified. Step 3: Evaluation, which involves a detailed comparison of potential locations. Step 4: Selection, where a thorough analysis of the chosen location and government policies is conducted before making the final decision.
What are the disadvantages of selecting a poor location for a facility as mentioned in the text?
The disadvantages of selecting a poor location for a facility include: increased maintenance costs, expensive land purchase and infrastructure construction, difficulty in marketing and transportation, dissatisfaction among employees and workers, and abnormal wastage and process delays.
Why is facility location considered a strategic and logical decision according to the text?
Facility location is considered a strategic and logical decision because it impacts the business's finances and involves evaluating various factors. The organization must make efficient location decisions to ensure the success of the business.
Test your knowledge of location decision making for facility planning and its impact on profitability, cost, and success. Explore the factors influencing the selection of an ideal geographical region for installing a facility or plant.
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