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Facilities Planning and Design: Facility location factors and methods · Location Factors

What pulls a factory, warehouse or service toward one place over another, from transport and labor costs to customers, clusters and hidden costs.

Facilities Planning and Design · 25 questions

Try 3 questions

1. In what order are facility location decisions usually narrowed down?

  1. Region, then community, then specific site
  2. Specific site, then community, then region
  3. Community, then region, then specific site
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Answer: Region, then community, then specific site

Planners first pick a broad region for markets and costs, then a city or town for labor and services, and only then a plot with the right land and access.

2. A plant turns 10 tonnes of ore into 1 tonne of metal. Where do transport costs favor locating it?

  1. Near the source of the ore
  2. Near the final customers
  3. Halfway between mine and customers
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Answer: Near the source of the ore

The process loses most of its weight, so it is cheaper to ship one tonne of metal than ten tonnes of ore: weight-losing industries locate near raw materials.

3. A soft-drink bottler mixes a small amount of concentrate with water available almost anywhere. Where should it locate?

  1. Near the concentrate supplier
  2. Near its markets
  3. Wherever land is cheapest
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Answer: Near its markets

Bottling is weight-gaining with a ubiquitous input, so shipping heavy finished drinks is the dominant cost; plants sit close to the people who drink them.

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