Case Study Facility Location Choice


case study on facility location planningwe will take an example of paradise recycling company operating in north indiaparadise Recycling Services Inc. has expanded its collection services into a newarea which is himachal pradesh.The business wants to set up a series of collection facilities for recyclable products, such as cans, newspapers, and cardboard boxes in selected districts of h. p. It wants to locate its facilities so they are convenient, but at the same time it doesn't want to put a depot in every city in the area. Location analysisis an ideal means of helping Paradise serve its clients well at as low a cost uses location analysis to show what its options are.the selection of appropriate location depending on the size of the industry can be done in two stagees1- evaluaton of various geographic areas and the selection of an optimum area2- with in each area there is a choice of proper site which can be urban ,sub urban ,or rural are gererally know as ind. zonesThus in the process of loc ana. 1stly sum appropriate geo. areas is selected n frm dat area a proper site is sel. 4 d establishment of d plant . d analysis 4 dchoice opf appropriate area n coresponding site is based on a no. of measures discribed belowMEASURES 4 D SEL. OF LOCATION:the fundamental objective of facility location analysis is to max. d profit by min the total cost of production process n marketing cost of finished productTOTAL COSTS= FIXED COST+OPERATIONAL COSTSfixed costs include expenditure on land building machines and other equipments etc. operational costs are d expendituresincurred on inputs, transformation process n d distribution of output.d contribution of d various factors to d total cost will vary from place to place eg. a possible advantage of cheap labour at someplace may be offset by more expenditure on fuel, power, taxes etc. similarly dcontri of various fartors also depend on d nature of product eg. in oil n chemical product d labour cost represent only a small proportion of total costs whereas it is quite high in garment n texitle industryThus the selection of an area n finally a site for a plant needs a careful studyif a good job is to be donethe ana lysis canbe didived into 2 catagerios1- involving quantitative factors2- comparison of qualitative factors1- analysis based on quantitative factorsunder ths d various methods used areA- comparetive cost chart - this is based on location cost summary chart a comparitive chart of total cost involved in setting up a plant is preparedthe comapany strategically evaluated varios 10 locationLOCATION ANALYSISA location profile of the area helps the business understand the trade-off between population coverage and number of recycling depots. With fewer depots, a smaller number of people is within a given coverage radius, but costs are lower. Atthe same time, locating more facilities (in the most strategic manner possible)helps to bring the recycling service close to more people, but at higher cost. The graph below shows the balance between percent of population within range of adepot, and number of depots. For example, the graph shows that four depots located strategically would be within 4 district which covers of 70% of the area's p

Тень Гиральды падала на площадь, как срубленная гигантская секвойя. Халохот внимательно проследил взглядом всю ее длину. В дальнем конце три полоски света, прорываясь сквозь прорези, четкими прямоугольниками падали на брусчатку мостовой.

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