Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical.

A location strategy in operations management is a plan that involves determining a company's objectives and finding the right location to achieve them. Location decisions are strategic decisions that require large financial investments and are irreversible.  Here are some factors to consider when choosing a new location: Geographical proximity, Availability of skilled programmers, Costs, and Availability of amenities and services.  Here are some steps to making location decisions: Identify dominant location factors Develop location alternatives Evaluate location alternatives Make a... Show more

A location strategy in operations management is a plan that involves determining a company's objectives and finding the right location to achieve them. Location decisions are strategic decisions that require large financial investments and are irreversible. 

Here are some factors to consider when choosing a new location: Geographical proximity, Availability of skilled programmers, Costs, and Availability of amenities and services. 

Here are some steps to making location decisions:
Identify dominant location factors
Develop location alternatives
Evaluate location alternatives
Make a final selection 

Here are some other factors that affect location decisions:
Product and industry
Availability of resources
Proximity to consumers
Climate conditions
Proximity to market
Regulatory and policy issues 

Location decisions have a direct effect on an operation's costs as well as its ability to serve customers. Once made, location decisions are difficult and costly to undo.

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