Location decisions

1. AAAA
REPORT REPORT REPORT REPORT
ONONONON
LOCATION DECISIONS LOCATION DECISIONS LOCATION DECISIONS LOCATION DECISIONS
PRESENTED BY: SATYABRATA PRADHAN
KRUPAJAL BUSINESS SCHOOL
REGD NO:11KB009
BATCH.NO:-2011-13

2. �Corporate desires
�Attractiveness of region (culture, taxes,
climate, etc.)
�Labor availability, costs, attitudes toward
union
�Cost and availability of utilities
�Environmental regulations of state and town
�Government incentives
�Proximity to raw materials & customers
�Land/construction costs
Region Location Decision Region Location Decision Region Location Decision Region Location Decision

3. �Site size and cost
�Air, rail, highway, waterway systems
�Zoning restrictions
�Nearness of services/supplies needed
�Environmental impact issues
Site Location Decisions Site Location Decisions Site Location Decisions Site Location Decisions

4. �Economic
◦Site acquisition, preparation and construction costs
◦Labor costs, skills and availability
◦Raw Material costs and availability
◦Transportation costs
◦Taxes
Factors Affecting the Factors Affecting the Factors Affecting the Factors Affecting the
Location Decision Location Decision Location Decision Location Decision

5. �Economic
◦Technology
◦Human Resources
◦Utilities ( Electricity ,water , etc )
◦Banking Facilities
◦Storage facilities
CONTD. CONTD. CONTD. CONTD.

6. �Non-economic
◦Labor attitudes and traditions
◦Training and employment services
◦Community ’s attitude
◦Schools and churches
◦Recreation and cultural attractions
◦Amount and type of housing available
◦Environment Standards
CONTD CONTD CONTD CONTD

7. �Other
◦Climate
◦Political Stability
◦Government Regulation
◦Unionization
CONTD CONTD CONTD CONTD

8. �Changes in the market
◦Expansion
◦Contraction
◦Geographic shift
�Changes in Costs
◦Labor skills and/or costs
◦Materials costs and/or availability
◦Utility costs
Some Reasons the Some Reasons the Some Reasons the Some Reasons the
Facility Location Decision Arises Facility Location Decision Arises Facility Location Decision Arises Facility Location Decision Arises

9. �Risk
◦Political Risk
◦Economic Risk
◦Social Risk
�Changes in infrastructure
◦Legal System
◦Transportation
◦Technology
CONTD. CONTD. CONTD. CONTD.

10. �Physical Characteristics
◦Whether or not power is purchased
◦Heating & Ventilation
◦Storage space
◦Types of carriers
�Operating Costs
◦Cost of labor & taxes
◦Cost of land & fuel
Significance Of Location Decision Significance Of Location Decision Significance Of Location Decision Significance Of Location Decision

11. �Center of Gravity Method
◦Finds best distribution center location
�Location Breakeven Methods
◦Special case of breakeven analysis
�Factor Rating
� Load Distance
Analyzing Location Decisions Analyzing Location Decisions Analyzing Location Decisions Analyzing Location Decisions
Quantitative Approaches Quantitative Approaches Quantitative Approaches Quantitative Approaches

12. THANK YOU THANK YOU THANK YOU THANK YOU