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Locating Facilities: Factors

Bit Technology Inc. is a new firm and they are deciding where to locate its facilities. As a high-tech manufacturing firm:
1. What factors should be taken into consideration in making this decision?
2. Does the fact that it is international corporation affect the types of factors one should consider?
3. Which location would you choose if you were in charge of determining a location for a new high tech manufacturing facility? This location can be local, national or international. Please provide reasoning behind your decision.

Solution Preview

I think that one very important factor that should be considered in the decision on where to locate its facilities, is the distance that the facilities are from the raw materials that are needed for these facilities to operate in respect to high-tech manufacturing. This is due to the fact that if these facilities are located extremely far from the sources of raw materials that are needed for this manufacturing to take place, then it will be highly expensive to transport these raw materials to these manufacturing facilities, and thereby increase the organization's operational overhead costs. Another factor that should be considered in this decision are the number of qualified individuals within the area that can be trained as staff members within these facilities. This is due to the fact that that the organization must transport a great deal ...

Solution Summary

The solution discusses the different factors in locating facilities.