Processed Food in India Name- Arpit Pandey

Class- MBA (G)

Roll No.- 35
Importance of Location for production:

 Availability of cold storage facility as processed food needs to be cold stored to be

fresh for long time.
 Rules and regulations of the government need be check as many state governments
give rebate and subsidies in setting up a plant of processing food in those states.
 Easy availability of raw material that helps in reducing production cost.
 Availability of cheap and skilled labour that helps in improving the quality of the
product at low cost.
 Close to the market where there is demand for the processed food.
 Low transportation cost leads to low prices of the product and increase in profits of
the company.

Factor Rating Method:

KSF Weight(W) Scores (1-5) Weighted scores (W x Scores)

Within city Outside city Within city Outside city

Labour 0.20 2 5 0.40 1.00

Raw Material 0.20 4 3 0.80 0.60

Market 0.25 5 2 1.25 0.50
Transportation cost 0.10 2 3 0.20 0.30
Cold storage 0.10 5 1 0.50 0.10
Government laws 0.15 1 5 0.15 0.75
Total 1.00 3.30 3.25

Therefore, location within the city must be chosen as it has more advantages over location
factors as compare to location outside city.