Location of facilities
• The best location for facilities depends on many
factors, for example:
• If an organisation wants fast delivery , it will use
local warehouses that are physically close to final
customers;
• if it wants low costs, it will concentrate stocks in
large, centralised warehouses that are inevitably
some distance away from customers;
• if it imports and exports a lot of materials it might
use warehouses near to ports or rail terminals;
• if it manufactures goods, it will have a stock of
finished products near the factory