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Title: FACTORS AFFECTING A PLANT´S LOCATION
Description: A plant should be in a place where the cost of production is kept low in order to gain maximum profit. Identifying an ideal location is very important as it determines the cost of getting suitable raw material, processing raw material to finished goods, and distribution goods to customers
Description: A plant should be in a place where the cost of production is kept low in order to gain maximum profit. Identifying an ideal location is very important as it determines the cost of getting suitable raw material, processing raw material to finished goods, and distribution goods to customers
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FACTORS AFFECTING A PLANT´S LOCATION
Plant location is a place where men, money, machinery etc are brought together for
manufacturing products
...
Identifying an ideal location is very important as it
determines the cost of getting suitable raw material, processing raw material to finished
goods, and distribution goods to customers
...
Decisions regarding selecting a location need a
balance of several factors which are affecting plant location
...
Nearness to raw material
Availability of the raw material near the plant will reduce the cost of transporting raw
material from the vendor's end to the plant
...
2
...
Depending upon the
size of the raw material and finished goods, suitable method of transport like roads, rail,
water, or air is selected and plant location is decided accordingly
...
Nearness to market
It reduces the cost of transportation as well as chance of finished product getting damaged
and spoiled on the way
...
4
...
However, labour-intensive firms should select the plant
location which is nearer to the source of manpower
...
Availability of fuel and power
Because of the widespread use of electric power, in most cases fuel has not remained a
deciding factor for plant location even though steel industries are located near the source of
fuel to reduce fuel transportation costs
...
Availability of water
Water is used for processing, drinking, and sanitary purpose
...
7
...
For such industries, extreme humid or dry
conditions are not suitable for plant location
...
Presence of related industries
An industry can outsource some of the parts from the related industries near the plant
location
...
9
...
Success of an industries depends very much on the
attitude of its workers, therefore, while selecting the plant location, presence of these
facilities must be taken into account
...
Disposal of waste
Disposal of waste is becoming a major problem for industries like chemical, leather, sugar,
etc
...
Poorly disposed wastes harm both
human and animal lives
Title: FACTORS AFFECTING A PLANT´S LOCATION
Description: A plant should be in a place where the cost of production is kept low in order to gain maximum profit. Identifying an ideal location is very important as it determines the cost of getting suitable raw material, processing raw material to finished goods, and distribution goods to customers
Description: A plant should be in a place where the cost of production is kept low in order to gain maximum profit. Identifying an ideal location is very important as it determines the cost of getting suitable raw material, processing raw material to finished goods, and distribution goods to customers