Question

Explain the factors considered in selecting plant location

Answer 1

Plant location must be near a market. ... The goods and services must reach the market on time, and it must be available to the consumers at a low price. Therefore, this factor is given importance while selecting location of a plant.

Answer 2

Plant location is important as it affects capital investment and operating costs.

Explanation:

Plant location is important as it affects capital investment and operating costs.

A company's quality, effectiveness, competitiveness and profitability are all affected by its location.

Following are the numerous factors that are regarded while selecting plant location.

• Availability of raw material at the selected location.
• Availability of transport facilities at the selected location.
• Proximity to market.
• Availability of electricity, fuel or gas.
• Waste products disposal facility.
• Proper water supply.
• Availability of skilled manpower or labour.