Table showing difference of plant location and plant layout
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Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken.
It is an important pre-requisite for efficient operations and also has a great deal in common with many problems. Once the site of the plant has been decided, the next important problem before the management of the enterprise is to plan suitable layout for the plant.
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