Operations Management: Processes and Supply Chains, 12th Edition

A Systematic Location Selection Process

Quantifiable costs and other measures as well as various qualitative factors must be considered as parts of a complete evaluation. For example, the impact on the environment must be balanced against the land and construction costs of a new plant. How does one proceed with a comprehensive analysis? A systematic location selection process begins after perception or evidence indicates that opening a retail outlet, warehouse, office, or plant in a new location will improve performance. The process of selecting a new facility location involves a series of steps.

1. Identify the important location factors and categorize them as dominant or secondary.

2. Consider alternative regions; then narrow the choices to alternative ...