Category Archives: Facility Decisions: Location and Capacity

Qualitative Factors

Qualitative Factors

The qualitative factors include (a) local infrastructure, (b) worker education and skills, (c)( product content requirements, and (d) political/economic stability.

Facility Decisions Location and Capacity

Chapter Objectives 

Present a framework for evaluating alternative site locations.

• Identify the various factors, both quantitative and qualitative, that should be taken into consideration when selecting a location for a manufacturing or service organization.

• Distinguish between those factors that are important for locating a manufacturing facility and those that are important for locating a service operation.

• Introduce geographic information systems (GIS) as a tool for evaluating locations.

Facility Decisions: Location and Capacity i

Facility Decisions:
Location and

A client of Fluor Global Location Strategies, a firm specializing in site location analysis, decided to locate its new power generation facility in Ohio because of various tax incentives and its central location within the United States. To determine specifically where in Ohio it should locate this
facility. the firm provided Fluor with the following information.

• The plant had to be within 50 miles of a commercial airport

• The manufacturing workforce of the county must be greater than 5,000.

.• The facility must be within five miles of a 230-kVolt transmission line.

• The facility must be within five miles of a 12-in~h or larger gas line.

To identify all of the potential areas within Ohio that met these four criteria, Fluor employed -geographic information systems (GIS) software As an example, the map shows areas within the state that met above one of the criteria-that the facility must be within fifty miles of a commercial airport. A similar map was developed for each of the other three criteria. Again, using the GIS software, Fluor overlaid the four criteria onto a single map, which identified only those areas that met all four requirements.