— Rosenfield (2015) illustrated that decisions related to facility location are very vital in terms of offering added benefits to the organisational profit margin. A wrong decision in this domain can harm the growth plan of the company at large. There are some basic types under which the company must make its decision related to the location, and in case it meets the demands of the company the location turns into the facility location.

Consideration related to the proximity of the consumers is the major type of facility location. As this location gets selected, the company saves expenses related to transportation of carrying the goods to the customers.

Selection of the right business area is very important. For this purpose the facility location needs to identify an area that has similar businesses around it. With similar businesses in the neighbourhood, the business become conducive as buyers prefer to visit a place where choices can be made (Karakitsiou, 2015).

The next type of facility location refers to factory establishment, where the availability of labour in a particular location appears very helpful for the company. In terms of manufacturing units, or even educational institutions, the availability of skilled population offers huge facility of growth to the company (Rosenfield, 2015).

Agreements related to free trade and availability of suppliers are other two types of facility location. Agreement with the particular zone for trading and gaining relevant suppliers for the same zone are the two basic essentials for the expansion of any business. These facilities also needs to keep a check on the trading policies of the particular nation.

Lastly, keeping in tally with environmental policies of the location is very important for a company. Following the rules of global regulations and the regulations the by the particular nation are significant aspects to be noted by the company.

 

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