FACILITY LOCATION

Facility Location

Table of Contenet

Contents

Introduction3

Importance3

Analysis4

Challenges6

Application7

Reference10

Facility Location

Introduction

The location of industrial facilities or services is a fundamental element that must be taken into account when planning future operations of any company. Importantly, the extension of the life cycle of an organization depends largely on the site or region where you want to install as if tracking some key factors fail at the time of conception of the organization, it tends to shorten its cycle life tends to recur in the relocation of facilities, a decision that could be quite onerous (BORJAS 2009 12). The study location is also a vital element for the analysis of new or expansion projects from the standpoint of financial and economic.

Importance

A good facility location requires a detailed study of the factors that may affect both the point of view super localization and the macro localization or from the point of view micro localization. It says it needs a detailed study from the point of view super localization when there are cases of transnational organizations worldwide must choose a nation or country that does have some attractive patterns that define the final choice of a plant or a branch to expand their operations. It is often called macro localization studies, when a national company analyzes various regions within a nation or country to set its production operations or services (Jacobs 2011).

When a company has chosen a region that is appropriate for their operations, then proceed to carry out a detailed study of the possible cities, towns or locations of interest that are within the region being analyzed. In this study tends to be designated by the name of micro localization. Importantly, these different classifications that are entered into the study of the location of facilities reflects the degree of development of countries and organizations, because while the latter are larger, more careful and more costly are the necessary studies should be taken into consideration when expanding their operations. Then proceed to discriminate against the most common factors that can occur when carrying out a study of the location of facilities (TAWFIK 2004).

There is no doubt conclude that this aspect could become a serious problem for a company to expand their operations. Across the globe there are customs, habits and lifestyles of each nation that while they may present attractive elements for the functioning of a productive organization, the mere fact that people do not accept these activities or the end product of a particular transformation makes it impossible to think about the feasibility of its location in the country being analyzed. A clear example is the installation of an industrial complex that is dedicated to the production of canned meat in India, this country has a tradition not to consume products from certain types of animals for human consumption; install production processes this country would mean wastage of local demand and the corresponding rejection of the population.

Analysis

Each country has its own rules and legal constraints. A transnational company which intends to expand into a specific nation must respect government ...