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Location Strategy
It is difficult to set down rules whereby the problem of facilities location can be programmed but there are a number of factors which should be considered. It is worth differentiating between the problem s of location and of site the location is the general area, and the site is the place chosen within the location. The decision on sitting thus probably proceeds in two stages: in the first the general area is chosen and then a detailed survey of that area is carried out to find possible sites. The final decision is made by taking into account more detailed requirements.
The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from order
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