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 high and increase the cost significantly.
• Shelf life of the product is low.

Nearness to the market ensures a consistent supply of goods to customers and reduces the cost of transportation.

4.  Availability of labours:  Stable labour force, of right kind, of adequate size (number) and at reasonable rate with proper attitude towards work are a few factors which govern plant location to a major extent.

5.  Availability of water, electricity:  The basic infrastructure facilities like power,

water and waste disposal etc., become the prominent factors in deciding the location.

6.  Availability of land :  Needed for establishing the plant and for future expansion.

7.  Government policy and relaxation to backward areas:  The policies of the state government and local bodies concerning labour laws, building codes, safety etc. are the factors that demand attention. The government also provides special facilities like various tax concessions, tax holiday for a specified period, etc. to promote industries in backward areas.

8.  Environmental impact and effluent disposal:  Facilities must be provided for the effective disposal of the effluent without any public nuisance. In choosing a plant site, the permissible tolerance levels for various effluents should be considered a attention should be given to potential requirements for additional waste treatment facilities. As all industrial processes produce waste products, full consideration mu be given to the efficient produced and cost of their disposal. The disposal of toxic a. harmful effluents will be covered by local regulations, and the appropriate authorities must be consulted during the initial site survey to determine the standards that mu be met.

9.  Local comm unity considerations:  The proposed plant must fit in with and acceptable to the local community. Full consideration must be given to the sate location of the plant so that it does not impose a significant additional risk to the

community.

10. Climate:  Adverse climate conditions at site will increase costs. Extremes of low temperatures will require the provision of additional insulation and special heating for equipment and piping. Similarly, excessive humidity and hot temperatures pose serious problems and must be considered for selecting a site for the plant. Stronger structures will be needed at locations subject to high wind loads or earthquakes.