Intro to Business › Section J · Operations management › Topic J.3
Location decisions
Once a factory, warehouse or service centre is built, moving it is slow and expensive, so the choice of site locks in costs for decades. This topic sets out the factors firms weigh, two simple tools for comparing sites, and the layouts used inside the building once the site is chosen.
In this topic
- Why location matters
- Inputs and labour
- Markets, clusters and incentives
- Going abroad
- The factor-rating method
- Worked example: two sites by factor rating
- Locational break-even analysis
- Worked example: three sites by cost
- Laying out the facility
- Common mistakes to avoid
- Key takeaways
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