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DISTRIBUTION CENTERS, WAREHOUSE,
AND PLANT LOCATION
INTRODUCTION
Facility location is one of the biggest decisions a company can make. The old real estate saying of the three most important concepts in real estate is location, location, and location holds true even for a company deciding where to put their facilities. ... Transportation is also a major factor in determining the site location. ...
Statement of Purpose
By researching this subject we hoped to learn more about the complexity of deciding a facility location. What considerations are there, and how to make an informed decision on the best site for a distribution center, warehouse, or a plant location. ... Facility location
· Raw Materials
· Labor
· Market
· Energy Sources
· Transportation Costs
II. Lowest-Cost Location
· Grids
· Foreign Trade Zones
III. Facility Relocation
· Labor
· Equipment
FACILITY LOCATION
There are three main factors influencing the location of a facility, raw materials, labor, and the market. ...
Transportation Costs
Transportations services are also an important consideration when selecting a facility location. ...
LOWEST-COST LOCATION
Since most products are a combination of numerous inputs, sometimes more than one location will reduce total transportation costs. ...
Grids
Computer programs and grids are commonly used to decide the best location for any additional facilities. ... When there are several existing stores the center of gravity approach can be used to find the best location for a single facility to service them all efficiently. ...
There are many other considerations to deal with when selecting a site location. ...
FACILITY RELOCATION
Sometimes a firm must move its facilities to another location. ... Include overtime costs, inventory costs, plus warehouse costs. ...
SUMMARY
Here we have discussed the decisions needed on deciding on a location for a facility. Numerous factors are influential in determining the location. ... You can use various computer applications to help you find the best location available to you.
Approximate Word count = 1877
Approximate Pages = 7.5
(250 words per page double spaced)
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