List the importance of plant location (5mark question)
Answers
Answer:
Plant location is important because of the following:
Location decisions are strategic, long-term and non-repetitive in nature. Without sound and careful location planning in the beginning itself, the new facilities may create continuous operating problems in future.
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Explanation:
Hi Buddy,
IMPORTANCE OF PLANT LOCATIONS:
(i) Location influences plant layout facilities needed.
(i) Location influences plant layout facilities needed.(ii) Location influences capital investment and operating costs.
Location decisions are strategic, long-term and non-repetitive in nature. Without sound and careful location planning in the beginning itself, the new facilities may create continuous operating problems in future. Location decision also affects the efficiency, effectiveness, productivity and profitability.
The location decision should be taken very carefully, as any mistake may cause poor location, which could be a constant source of higher cost, higher investment, difficult marketing and transportation, dissatisfied and frustrated employees and consumers, frequent interruptions of production, abnormal wastages, delays and substandard quality etc.
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