Find examples of good and bad location decisions. For your examples, what made each location decision good or bad for the company? (Question 8, page 348)
Our text tells us that the location of a facility is usually related to its capacity. Both fixed costs of plant and equipment and the transportation cost of moving goods play key roles in location decisions. Should the operation be located close to its suppliers (parts and raw materials) or its customers? A third factor is often the tax incentives offered by cities due to economic conditions where the available workforce needs more opportunities. This last factor tends to be more important in lesser skilled task operations.