Name the factors that influence the plant location and site selection decisions.
1. Nearness to raw material: It will reduce the cost of transporting raw material the vendor's end to the plant. 2. Transport facilities: Depending upon the size of raw material and finished goods, a suitable method of transportation like roads, rail, water or air is selected accordingly plant location is decided. It must be kept in mind that cost of transportation should remain fairly small in proportion to the total cost. 3. Proximity to markets: Every company is expected to serve its customers _ providing goods and services at the time needed and at reasonable price organizations may choose to locate facilities close to· the market or away from the mm depending upon the product. When the buyers for the product are concentrated advisable to locate the facilities close to the market. Locating nearer to the market is preferred if The products are delicate and susceptible to spoilage After sales services are promptly required very often Transportation cost is hi