Plant location is a strategic decision for
the entrepreneur. As plant installation is one time process, site selection
plays very important role for the business. The selection of plant locationsite
is important because of following reasons:
(1)The location of plant should be nearer
to the customers as well as to the suppliers in order to reduce the
transportation cost.
(2) For selecting the plant location,
physical factors such as Availability of electric power, transportation
facility, availability of labor, availability of water etc. must be considered.
(3) Also, political influence and community
factor may also effect the plant location.
(4) conditions such as temperature,
humidity, rainfall, probability of flood etc. are to be considered for site
selection.

No comments:
Post a Comment