Operations and Supply Chain Management (Mcgraw-hill Education)
Operations and Supply Chain Management (Mcgraw-hill Education)
15th Edition
ISBN: 9781259666100
Author: F. Robert Jacobs, Richard B Chase
Publisher: McGraw-Hill Education
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Chapter 15, Problem 1DQ
Summary Introduction

To explain: The motivations that typically make firms to start a facilities location or a relocation project.

Facility location:

It is the procedure of selecting the ideal location for a new plant or warehouse taking into consideration all the necessities such as transport, manpower, and other facilities.

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Explanation of Solution

There are many reasons why a firm might look at a facility location or a relocation project. Some of them are:

  • Firms that are looking to move closer to markets or close to the supply locations usually decided to relocate or create a new facility.
  • Sometimes firms might require an educated workforce which forces them to relocate near a major university.
  • Sometimes firms relocate as they find it difficult to operate within the regulations when the costs are too much to bear.
  • Sometimes firms relocate if they identify transportation is cutting off too much of their profits.

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