Answer to Question #123654 in Management for Sweta agrawal

Question

Suggest a suitable plant location to set up beverage manufacturing. Please give reasons

Answer 1

Location of an industry is an important management decision. It is a two-step decision: first, choice of general area or region and second, the choice of site within the area selected. Determining where to locate your next manufacturing plant can be a difficult decision, and it’s one that requires significant due diligence. Plant location refers to the choice of the region where men, materials, money, machinery and equipment are brought together for setting up a business or factory. A plant is a place where the cost of the product is kept to low in order to maximize gains. Identifying an ideal location is very crucial, it should always maximize the net advantage, must minimize the unit cost of production and distribution. Plant location decisions are very important because once the plant is located at a particular site then the organization has to face the pros and cons of that initial decision. While taking plant location decision organizations need to consider various factors such as availability of men, materials, money, machinery and equipment. At the same time plant, location decisions should also focus on expanding and developing facilities, the nearness of the market, transport facilities, availability of fuel and power, availability of water and disposal of water etc. There is no exact method of analysis or assurance for the selection of an optimal location. But an extent of analysis and study can help in maximizing the probability of finding the right locations.