Facilities Location

The proper location for the organization's facilities can be decided once and for all when the organization is formed, or it may be a recurring question. The site may be critical or inconsequential depending on the type of organization. For example, the management of a small consultancy firm may have to decide only on the original location. A large supermarket chain, however, may be required to open a new branch now and then, and the specific locations chosen for the branches may be critical in determining their success.

The location decision must combine a host of many factors including land and building costs, tax rates, infrastructural development, access to customers, potential for growth, energy sources, competitor's locations community acceptance, etc.