Chapter 15. Facility Location Decision

As the saying goes in retail, the three most important factors for success are location, location and location. This is not only true in retail but also for manufacturers as it plays a major role in both the cost and service of the organization.

Unfortunately, it is usually not considered often enough in the case of manufacturers or in many cases, in enough detail, and can potentially lead to catastrophe.

Location is a strategic, long term decision in nature that is not easily changed in the short term and applies to raw material sourcing, manufacturing, distribution and retail.

Strategically, the major goal or priority of the location decision for a manufacturer is to minimize cost, while retailers look ...

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