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Location of facility is problem associated with the planning phase of the factory or even a service sector.
The planning activity starts with locating the site such that no change is needed for years to come. It is a
very vital decision, which has a very long implication. This type of decision is called strategic decision. It
is not very easy to answer the location problem because of
Uncertainty in future
Constrains and limitation of resource to produce a site etc.
Complexity and conflicting factors associated with the site selection problems.
5 Govt policies Tax exemption, legal requirements, incentives, availability of loan/land etc.
6 cost facotrs Cost of land, cost of transportation and wages of unskilled labour.
7 competition Location of other industries in that area, market force for competition.