The decisions where and when to locate a facility and how big to make it are critical to the success If every business be it a manufacturing or service operation. As a result, significant analysis and planning are required to ensure that a potential location will properly support the long-term strategy and objectives of the firm. In addition the decision where to locate a new facility is complex involving both qualitative and quantitative factors.Like so many topics in operations management today location decisions and capacity planning are being significantly influenced, not only by advances in information technology but also by the trend toward globalization. As more firms continue to focus on their core competencies, management has changed its perspective on available capacity, while at the same time becoming more dependent on its suppliers. The growth in international markets as well as cheaper labor and other incentives offered by foreign countries,also has significantly affected decisions on where to locate new operations.