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Criteria used in considering where to locate facility

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1. What criteria should be used when considering where to locate a facility? What criteria does your organization consider when deciding the location of a facility? Are the criteria appropriate? How effective has your organization been in choosing appropriate facility locations?

2. What is the centroid method? Would this be an appropriate method for your organization to rely on?

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Solution Summary

This solution discusses what criteria should be used when considering where to locate a facility, and the criteria does an organization consider in this decision.

It also discusses the centroid method, and whether this is an appropriate method to rely upon. It includes links and examples.

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The following criteria can be used when considering where to locate a facility: type of product, proximity of customers, availability and quality of labor, political and economical climate, proximity of raw materials. Government regulations and environmental restrictions should also be considered. Should the company operate outside of the United States political risk would also be a factor.

When my organization considers the location of a new facility distribution is taken into account which includes the distance from facility from raw part suppliers as well as to customers. We want to make sure that we can distribute goods economically. Also, ease of access to ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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